Steve Pope wrote:
- quote -

Thanks for your insights - I have not actually seen the statements /
information containing the information as of today, however, his daught
her told me it was a CD. I was just trying to be a little more prepared
when I met with the client next week as far as what I might look for or
ask about. I know he is not very happy about the situation - which is
understandable. I will check into those websites you mentioned if I
discover it is indeed a bond. Thanks!
Cathy

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Cathy <countessa[at]eaglecom.net> wrote:

- quote -

Something is missing here, because "CD" would usually mean
a brokered CD, and the brokered CD's from Lehman Brothers Bank
are still good (it never went into receivership).

Supposing it's a bond instead of a CD, many Lehman bonds had
more recovery value than you describe, but a particularly
subordinated bond might be worth that little.

I would do some research by finding a brokerage statement
listing the CUSIP number for this bond, and check on its
current value on one or two bond engines e.g.:

http://cxa.marketwatch.com/finra/Bon...WatchList.aspx

http://fixedincome.fidelity.com/fi/F...earchMunicipal

I would be suspicious that some trader has made a lowball
offer for this bond, resulting in the alleged $6,000 price,
and it is in fact worth more.

Also, if a broker marketed it a "CD" but it was
not, that could perhaps be a candidate for a complaint/arbitration
process, depending upon what exactly transpired.

Steve

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I have a client that had purchased a $50,000 CD with Lehman Brothers CD
through a brokerage house sometime prior to Lehman's demise.

From what I understand right now, the client is expecting to receive or
has received around $6,000 in settlement of his $50,000.

I really want to find a way to deduct it as something other than a
capital loss (or bad debt) as the client is elderly (late 80's) and
probably won't live long enough to write it off at the rate of $3,000 a
year. He may have some capital gains to increase the allowable loss for
2008 (or 2009 - whenever he receives the funds), but not near enough to
absorb this kind of a loss.

I'm guessing the client is SOL, but I wanted to see if anyone has any
suggestions?

Thanks
Cathy Herber
Ellsworth, KS

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >