ILLMAS Posted March 12, 2015 Report Share Posted March 12, 2015 Corp XYZ invested $100K in Corp ABC, ABC went belly up and XYZ lost it's investment and reported the transaction in their 2013 1120. The owners of ABC collect some money and gave XYZ $25K back, how should the $25K be reported on the 1120? As other income? Thanks MAS Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 12, 2015 Report Share Posted March 12, 2015 How was it reported in 13? If a capital loss then recoup is a capital gain. If it was an ordinary loss, then it's ordinary income. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 12, 2015 Author Report Share Posted March 12, 2015 It was expensed in 2013 as a Loss on Investment, so we are okay reporting as other income. MAS Quote Link to comment Share on other sites More sharing options...
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