American ingenuity never ceases to amaze me. I received an email from Carol Sands, founder and managing member of Halo Funds. She has a new venture called ET Brutus which allows investors to legally recognize investment losses in the tax year of their choice. They purchase stock of dead or dying companies for $1 (plus a small service fee of $25) so the investor can recognize the tax loss. As the web site says:

“Not all investments are winners. Sometimes the entrepreneurs just walk away from their company and never formally close the company. Legally, this means the State and the Federal government think the company is still in operation. As long as the government thinks the company is still operating, you as an investor cannot take your rightful loss. By selling your interests to ET Brutus, you have a provable legal event that allows the tax loss to be recognized. Some companies may take a year or more to officially close. With ET Brutus, you can recognize the loss in the tax year of your choice. “

And I assume if the stock ever becomes worth something, ET Brutus is there to reap the rewards.