DNIB Unwind Inc. (fka BINDQ)

[allchinian]

The tax treatment for DNIB/BIND isn't what I originally thought.

DNIB is known as a "liquidation trust". The Liquidation Trust Agreement may be found starting on page 78 of the amended bankruptcy plan, document 415 on the primeclerk page for the bankruptcy proceeding:

https://cases.primeclerk.com/BIND/Home-DownloadPDF?id1=NDUxNTU5&id2=0

The tax purposes of setting up a liquidation trust are alluded to there.

It looks to me like the point of the liquidation trust was allowing recognition of capital loss in the 2016 tax year, and now I just barely gives me time to revise my 2016 taxes before the 3-year deadline. Note that the trust sent us a 1099 for tax year 2016 two years late, mailed in 2018. Back in 2018 I thought it wasn't a tax issue until the final liquidation would be received, but now I believe I was mistaken.

I'm not a tax expert and I just realized this, so my impression of this tax situation could change and it could be wrong. But the webpage

https://www.eisneramper.com/fund-managers-liquidating-trust-0516/

looks quite relevant.

My broker, Vanguard, still thinks capital loss will be recognized in 2020, which looks completely wrong to me. I'll probably be sending them a letter about my incorrect 1099 form from 2016, which should have recognized my capital loss.