Derecognition without replacement of shares that have become definitively worthless
The loss from an investment in shares is also tax-deductible if the bank derecognizes the shares that have become worthless without replacement.
The derecognition without replacement by the custodian bank of shares that have become definitively worthless results in a tax-deductible loss from capital assets. It is true that the demise of a capital investment does not constitute a loss-realizing sale. However, the Rhineland-Palatinate Fiscal Court does not see any reasons that could justify treating the demise of a share differently from the demise of another capital claim, e.g. the default of a loan claim.