How to record stock that goes to zero

[David Carlson]

On 12/27/2013 4:59 PM, Scott H wrote:
> I recently had some stock go to zero (yuck). I couldn't find anything in
> the documentation about how to record this. I tried to record a "sale"
> of all my shares with a share price of $0.00 USD but it won't let me do
> that since GnuCash requires a non-zero share value. How should I record
> this?
>
> I'm also not sure how to record the loss itself anyway. For example, do
> I create an account called "Expenses:Realized Losses" and record it
> there, or do I record it as negative income in "Income:Realized Gains"?
> In other words, are all capital gains and losses typically stored in one
> place? The documentation didn't seem clear about this either. Thanks in
> advance.
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I think that the US IRS is much more likely to accept a write-off if the
stock is actually sold.  My broker bought back the stock that he had
originally sold me that later tanked for a few cents a share.  That
makes a clean report from the brokerage house to support your tax return.

David C