I have some worthless Washington Mutual bonds. They last traded at one penny -- that is to say, one ten-thousandth of face value.
Although certain WaMu bondholders will see some recovery, my bonds happen to be in a class that will see nothing.
The question is -- do I actually need to sell them to take the capital loss, or can I simply do nothing and claim it anyway for 2008, with perhaps some documentation as to their worthlessness?
Steve