I have a client that had purchased a $50,000 CD with Lehman Brothers CD through a brokerage house sometime prior to Lehman's demise.
From what I understand right now, the client is expecting to receive or has received around $6,000 in settlement of his $50,000.
I really want to find a way to deduct it as something other than a capital loss (or bad debt) as the client is elderly (late 80's) and probably won't live long enough to write it off at the rate of $3,000 a year. He may have some capital gains to increase the allowable loss for
2008 (or 2009 - whenever he receives the funds), but not near enough to absorb this kind of a loss.I'm guessing the client is SOL, but I wanted to see if anyone has any suggestions?
Thanks Cathy Herber Ellsworth, KS