Let me continue with my comments. In accounting and in Tax, in this case, you can only take a deduction that is 1. Allowable and 2. loss is only deductible once there is no longer a reasonable expectation of recovery. In my professional opinion, we don't know what the courts will rule in these bankruptcy proceeds. Chapter 11 allows for a plan of reorganization to keep its business alive and pay creditors over time. There are variables here that we cannot answer at this time so the Courts guidance will have a hand in the timing of any deductions for the taxpayers.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
