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Tax.appeal.168, Tax Accountant
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I had General Motors senior notes of 1000 units at $25 per

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I had General Motors senior notes purchased in 2003 of 1000 units at $25 per unit amount 25,000. The US Bankruptcy cout issued a noitice of entry to all creditors. I recieved on 4/21/2011 the following statement statement from fidelity General Motors Corp "reorganization merger payout # XXXXX M0050688210000 95 new GM shares and 172 General Mortor Co WTS exp on 7/10/2016, and7/10/2019 resptively. Value at the time 4/21 was $7,280.18. Can I now file in tax year 2011 the loss on the GM senior notes with a Cost Basis 25,000 and a date of sale or exchange of $7280.18, with a loss of 17,719.82
Submitted: 4 years ago.
Category: Tax
Expert:  Tax.appeal.168 replied 4 years ago.
Hello, THANK YOU for choosing Just Answer. My goal is to help make your life...a little...LESS taxing.

Yes, since you have realized a loss, you may claim a capital loss. Note that in addition to filing the Schedule D, you will also need to file the Form 8949 Sales and Dispositions of Capital Assets. See link to form below. Starting for tax year 2011, the IRS requires that this form be completed along with the Schedule D. Also note that even though your loss amount is $17,719.82, the maximum amount that you will be able to claim as a capital loss is $3,000 per year. The remaining amount carries over to future years until the loss amount is exhausted.

Link to form 8949/instructions:

Please let me know if I can be of further assistance to you regarding this matter.

Thank you.
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