Legal Question in Tax Law in Iowa

Line 20, IRS schedule A

I owned some Lehman Brothers bonds. In Feb. of 2011, I sold those bonds for about 24 cents on the dollar. As you know, Lehman Brothers filed for bankruptcy in 2008. Line 20, schedule A allows for money lost at a financial institution but lost, due to bankruptcy. Does my loss qualify for a deduction on line 20?


Asked on 1/30/12, 8:28 am

1 Answer from Attorneys
Robert Luedeman solo practitioner

I'm not a tax attorney. Check with the IRS and see what they've got to say. My limited knowledge of it makes me think it would be treated as a capital loss.

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Answered on 1/30/12, 8:54 pm


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