American Airlines Group Inc (AAL)

[CRichard]

The gains are taxable for sure. They originally were trying to treat each distribution as a new position, and the aamrq shares didn't count. Instead they treated aamrq as if it went through some kind of split, a non-taxable event. Which is how it is spelled out in investors relations, but hidden behind a lot of legal jargon.

For sake of ease.

Purchase 1,000 aamrq 10/13 for $5,000
Sell 750 aal 10/14 for $25,000

Gains:$20,000
Cost basis date:10/13
Cost basis:$5,000
Long term gains: $20,000

Distribution dates are irrelevant. There is no loss based on the fact that you lost 25% of your original share count. It would be like trying to claim a loss on a reverse split. The dollar amount that is shown in your account related to aamrq shares is an arbitrary number based on the fact that there is no definitive answer on whether or not there will be an additional distribution.

This is what I've gained in all the conversations I've had. Unfortunately there is no real authority on it as investors relations does not involve themselves in interpreting tax implications outside of the documents they have provided.