Legal Question in Tax Law in California

I live in California, a former employer gave me 100,000 shares of common stock as a hiring bonus. When I left the company I was informed that my grant could not be excercised. although that fact was not spelled out in the stock plan.

The company later merged and the strike price was .35 cents per share.

This cost me $35,000.00 can I write this off to fraud as a bad debt ?

Thank You

Asked on 10/02/12, 12:09 pm

1 Answer from Attorneys

Neal Rimer Neal M. Rimer, Esquire

Unless you recognized income from the shares in the past, NO, there is deduction. If you did recognize income on the value of those shares given to you, then yes, you will have a deduction to the extent of the income you previously reported.

Read more
Answered on 10/02/12, 12:15 pm

Related Questions & Answers

More Tax and Taxation Law questions and answers in California