So we maybe we get screwed now by the tax folks? Thanks hiddengems for elaborating so very detailed on the tax consequences of this recent Recaf transaction. But it seems to me to be just another trap for someone (this time the government) to take the small investor.
As to getting real expert advice, you could not be more right.
Years ago I monkeyed around with some funky nickel and dime junk bonds of a bankrupt company and some other stuff. The Infernal Revenue Service came at me with huge demands on my Mickey Mouse profits trying to tax me on the value of the bonds before bankruptcy. Needless to say it cost me dearly in legal, accounting, my time, etc. etc. As they say "an ounce of prevention is worth a pound of cure".