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The IRS requires that before distributions are made to security owners, a form W-9 must be issued by the company and signed by the owner to determine if any withholdings are required by the issuer. I have not received a W-9 and this is a concern if we are going to have distributions before the end of the year.
Thanks AZ, you have answered my question and now its just matter of waiting to see what the results are. From your explanation I would think we are still quite a ways away from making our first deposit.
Thanks again AZ, but I am confused as how this plays out. I have worked over 50 years with trusts and estates and here is my problem. Trusts must follow the document as written in making distributions and I would think the document states the owners/beneficiaries. I would assume that the owner/beneficiary of at least part of the security was WAMU or its subsidiary. How does the trustee get a distribution to me for my escrow shares. Someone has to determine who owns the shares to enable the distribution to be made. So, I released my ownership as suggested, what entity would gather the funds and data to know who to send it to?
Thank you AZ, and if I followed you correctly, there will be no amounts going to my escrow shares. the benefit will be the increase in value of my 1400 shares of Mr. Cooper Group,Inc when the trust assets are released to the company.
AZ,I assume the escrow shares will share in the distributions, but I don't see that mentioned in your explanation. I have approximately 100,000 escrow shares. after all notes and preferred are paid how do you determine what goes to the escrow shares that came from my common stock and what goes to my approximate 1400 shares of Coop?
Civil War General..I have that same bond and was advised that filing a claim was not necessary. Did you file a claim?
But what is the total of the bonds in tranch 5 that must be paid before escrows get paid? Is it 1 billion five billion or what?
Does anyone have an idea as to how much is due to the Junior Bonds and do they come before escrow in the in the distribution of cash? My bonds are Washington Mutual Bank bonds CPN 6.875 due 06/15/11.
Taxes
I am a CPA that specializes in taxes and I too am in the dark about the taxability of distributions from the liquidating trust.
This is a very unique situation and most of us in the profession have never seen anything like this. I did do a little research but have some doubts as to what I found. As you know, the trust owns the assets not us individually. I believe that if and when we receive a distribution it will be in cash only. What I found suggested that the distributions from the trust would be taxed as ordinary dividends as opposed to qualifying dividends. If so I doubt that they would be taxed at capital gain rates. Please note this is my best guess at this time
TAXES ORDINARY VS CAPITAL GAINS
Assuming there is value in our escrow accounts , then it is a capital asset. If we receive distributions from escrow, I believe that would be liquidatind a capital asset and amounts received in excess of our cost basis would be subject to capital gains taxation not ordinary income. One of my questions is still where did our cost basis end up? Should it all go with the WMIH or should it be allocated between the WMIH and the escrow account. My best guess would be allocating it, but that is pure speculation. In fact everything I have stated is just an educated guess and I have nothing factual to support it.
As to my opinion on how to avoid paying taxes, there is only one legal solution as I see it DON'T MAKE MONEY OR HAVE MONEY.
My firm is in Fort Worth, Texas.
Tax Treatment of WAMUQ I really believe you are receiving bad information om the handling of your WAMU stock on your 2012 tax return. Most of the brokerage houses are not showing a disposition of your stock in 2012, because I believe the taxable treatment has not been determined. The transaction has some characteristics of a stock dividend or spinoff which normally are not taxable transactions. I have not seen a treasury ruling on the transaction and am just speculating. I believe at some point we will have the information as to how to report the transaction and I am extending my return at April 15th if a ruling has not been made. I will say though I feel confident that reporting the transaction showing no consideration is incorrect, We all know that we received WMI Holdings stock as a part of the consideration and therefore reporting zero as proceeds is incorrect. I have been a CPA specializing in taxes for over 30 years but I have to admit that I have never dealt with a transaction like this and for the few clients I have that are unlucky enough to own WAMU I am extending at this time. As is the case of just about every aspect of the WAMU stock nothing is simple
My brokerage house did not show a disposition of WAMUQ on the 1099B. I believe that there is not a taxable transaction in 2012. If there is the proceeds certainly would not be zero. As a minimum you received shares of WMIH which had value. The transaction has similarities of a stock dividend or swap which are not taxable transactions. I am a tax preparer and have tried to determine the taxability of the transaction and have seen nothing released by the company, the trustees or the Treasury that has dealt with the subject. I will extend my return and see if anything comes to light in the next several months but as of today I am assuming that there was not a taxable transaction in 2012.
Pick your ramblings empasize your lack of knowledge in investments. The primary SEC required filings are the 10K which contains among other reports audited annual financial statements; the 10Q which include unnaudited quarterly financial statements and the 8K which is issued periodically for a special event of some type of news like a new issue , merger etc. or in our case current unaudited July statement. I am a CPA although not currently engaged in SEC compliance work would warn you that audited financial statements are costly (therefore only done annually) and have very little to do with the movement of share price of publicly traded stocks, because in todays world a companys good or bad news is usually known before the audited statements are released.
1200 hours over a 4 year period is $600,000. For a case like this that number does not sound to out of line, depending on the type involvment that particular firm or indivdual was engaged to do.
A NOL has zero value until there is net income to offset it with. The 8.6 billion cannot be used if there is no taxable income. It cannot be sold, and it is even difficult to be used to offset income in a merger or acquision. Some value can be realized under the right conditions. It will take considerable time to find, negotiate a merger candidate and receive IRS approval of any kind of merger that realizes the tax attributes of the losses. Your expectation are unreasonable. This will be a long term process if it succedes at all. The good news according to the footnote is that the NOL's don't begin to expire until 2030. Sit back relax and hope for the best.
Catz...It seems to me that the BOD is moving in a prudent manner and at a reasonable pace. They should not be specific in the plans re mergers/aquisitions that may be in the planning stage. They have in effect disclosed the general plan when they hired the Blackstone group to advise and research growth possibilities. The Board now should be building the infrastructure to facillitate the growth. This all takes time and the shareholders must be patient. In the mean time I have been and plan to continue to add to my position at these low price per share.
As for as the trust, I would like to see the trustee provide more information about payoffs, settlements and distributions. I don't believe that would have any effect on the trust's bargaining power.
Well done. There is way to much discusion about the judge. The board needs to concentrate on collections and distributions of the trust and the progress of our new company to realize benefits from the NOL's
My additional shares recorded today at First Clearing, Calculated at.76% as reported
The Financial Accounting Standards Board (FASB) requires audited financial statements to be prepared using GAAP. GAAP reflects historical cost not fair value. The Footnotes will reveal the amount of the NOL's not the value. The value can not be determined at this time. The audited financial statements will be informative, but will not provide the value of the company or its underlying assets.
Audits do not disclose value. The audit will present assets and liabilities at historical cost, not fair value. It will also report on income and cash flow along with footnote disclosures. None of this will reflect values. NOL's will be disclosed in the footnotes,but not valued.