Here are ways to take a tax loss from Pershing as custodian. 

There are several methods available to remove a security from a client account. If the position is of worthless or insignificant value and is eligible to be removed it can be removed by submitting a Disposition of Non-Transferable Security form or by submitting a Disposal of Securities with Insignificant Value form; the ability to be removed using the alternative forms is subject to the required criteria being met.

A Disposition of Non-Transferable Security is a request to remove an asset from a Pershing brokerage account when it has no Transfer Agent and cannot be re-registered. A Disposal of Security of Insignificant Value, on the other hand, is a request to remove an asset from a Pershing brokerage account whether or not the position has a Transfer Agent.

A Disposition of Non-Transferable security applies if all of the following criteria are met:

• There is no Transfer Agent
• The shares have no quoted price
• There is no market—meaning the shares are not traded on an exchange
• There is no stockholder equity
• The issuer has filed for Chapter 7 or Chapter 11 bankruptcy
• The Charter is cancelled

The client will receive a non-negotiable certificate of ownership and the asset will be removed from the account.

Possible Rejection Criteria for Disposition of Non-Transferable Security Requests:

• The security has already been coded as No Stock Holder Equity
• The security is still held in Escrow
• The security has a Foreign CUSIP®
• The security has an active Transfer Agent
• The security is currently going through a Mandatory Reorganization

An Insignificant Value Letter applies if all of the following criteria are met:

• The Transfer Agent is still active
• The shares have no quoted price
• There is no market—meaning the shares are not traded on an exchange
• The client wants to forfeit the position and any type of future distributions from the security

The client will receive a confirmation letter from Pershing for the removal of the security.