Don't we get asked about this every year? Or maybe that was another Chinese stock.
@sjrcpa is correct, delisting does not mean out of business. Twitter is delisted also. The company's website is still up.
Here is what one website says about claiming worthless stock. If it became worthless in 2023, you can always file an amended return.
When do you deduct a worthless stock?
A worthless stock deduction is taken in the year the security is deemed worthless. To claim a deduction, you must establish that the stock became worthless during the tax year you are filing for. For example, investors in First Republic Bank stock would have taken a worthless stock deduction in 2023 when the stock stopped trading.
How do you prove a stock is worthless?
To prove a stock is worthless and take the worthless stock deduction, you must show that the stock is no longer traded, has declared bankruptcy, has no market value (if not publicly traded), or is in the process of liquidation. This can include public records, news articles, or correspondence from the company itself. If the stock is still showing on your brokerage account, but has a zero balance, you can use the zero balance as justification of a worthless stock. Alternatively, you can take a screenshot of you unsuccessful trying to sell the stock to prove that the stock is no longer traded.
How do you liquidate worthless stocks?
In many cases you cannot liquidate a worthless stock because it is no longer traded. You can abandon the shares by calling your broker and having them remove the shares from your account. Abandoning your stock means you are giving up all of your rights to the stock.
https://www.acapam.com/blog/worthless-stock-deduction/
