What is MTLQQ? What About a Tax Loss?

by John V
(Kunkletown, PA, USA)

Question: I had purchased GM stock 2 years ago. Apparently, it's not worth anything anymore. Can I take this as a loss on my taxes for 2009? It is now known as MTLQQ.

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Answer: Hello John- I see that you have asked a couple of questions here, the first being "What is MTLQQ?", but I think you have answered and now what MTLQQ is already.

For more details, MTLQQ is the ticker symbol for Motors Liquidation Company, which became the new name for General Motors Corporation in July, 2009. Here is a description from Yahoo Finance:
"Motors Liquidation Company and its subsidiaries completed the sale of substantially all of their assets to General Motors Company on July 10, 2009. Previously, the company was primarily engaged in the design, manufacture, and marketing of cars and light trucks worldwide. It was formerly known as General Motors Corporation and changed its name to Motors Liquidation Company in July 2009 in connection with the sale of substantially all of its assets pursuant to Section 363(b) of the Bankruptcy Code and the Bankruptcy Court's sale order dated July 5, 2009. The company was founded in 1908 and is headquartered in Detroit, Michigan. On June 1, 2009, General Motors Corporation, along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York."

Here is a link to their website also: Motors Liquidation Company.

As far as tax consequences: if you are not familiar with tax laws and do not keep up to date with tax law changes, it is always best to build a relationship with an accountant who is. This way, whether or not you do your own taxes or have them do them for you, at least you have someone in the field to ask questions that are related. I have no problem asking questions of an accountant and be willing to pay for their expertise even though I do my own taxes.

With that said, from what I believe, generally you would have to sell your shares at a loss to be able to take the loss on your tax return, and even then, I believe you would only be able to take up to $3,000/year in tax losses and then roll forward any remaining losses to future tax years. There is more to it than this so be sure to check with an accountant for your specific situation.

I hope this helps.