Just recieved my 1099 from my TD Ameritrade account. I was expecting a loss from the conversion of RMIX to the warrants of USCR. But the 1099 did not even acknowledge the transaction, which was confusing to me.
My reasoning was that when I look at my gains/losses for the year, on 9/7/10, all my RMIX shares were sold and the loss was 100% of the total value.
In addition, the current value of these warrants in my TD portfolio are undeterminable/worthless.
As a result, I feel that since I incurred a 100% loss on 9/7/10, that I should report a short term capital loss on my 2010 Tax Return.
You received warrants in exchange for stock. Your cost basis in the warrants is the same as the cost basis for the stock. It becomes a loss when you sell the warrants for less then the cost basis or if the warrants expire worthless.