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Mandatory exchange of bonds - Chap 11 bankruptcy

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    Mandatory exchange of bonds - Chap 11 bankruptcy

    Taxpayer had $10k of bonds from a health care facility that went into Chapter 11. He received notice of a mandatory exchange of his old bonds for new bonds with principal amount of $7k.

    I believe his $10k basis carries over to the new bonds, but have been unable to find confirmation. He did receive $37 on a 1099-B in addition to the bonds. I believe that's a "fractional shares" type payment that is reported currently.

    Ever notice how the weird ones come in the last few weeks?
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