Pacun Posted June 4, 2007 Report Share Posted June 4, 2007 Client lost investments on one company (all investment on company). Client filed a long term loss in 2004 for $3,000. From a Class action suit, client got $1,000 back in 2007. I know the IRS will love if I report it as other income since client salary is more that $200K but his loss reduced long term capital gains in 2004. Should I report it as other income, capital gain, or amend 2004 and pay interest on money owed? More info might be available if needed. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 4, 2007 Report Share Posted June 4, 2007 First, did he have more than $3000 loss? Any carryover? If so, net the refund with the carryover before you report anything as income. If not, then I'd report it on line 21. Quote Link to comment Share on other sites More sharing options...
JohnH Posted June 4, 2007 Report Share Posted June 4, 2007 Pacun: This was posted over on the TMI board and might be helpful to you. http://taxprof.typepad.com/taxprof_blog/fi...005-16770-1.pdf Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 4, 2007 Report Share Posted June 4, 2007 John, thanks for that excellant source. That's one we all should take the time to read, since this is coming up more and more these days. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted June 14, 2007 Report Share Posted June 14, 2007 I just got a case like this, and knew I had read in depth about investment lawsuits somewhere recently. Thank god for this resource! BTW, what is the 'TMI board'? Quote Link to comment Share on other sites More sharing options...
redux Posted June 14, 2007 Report Share Posted June 14, 2007 I just got a case like this, and knew I had read in depth about investment lawsuits somewhere recently. Thank god for this resource! BTW, what is the 'TMI board'? Joan, the TMI board is the one published by "The TaxBook" see: http://www.thetaxbook.com/forums/forumdisplay.php?f=2 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted June 14, 2007 Report Share Posted June 14, 2007 Thanks, can't be on too many boards! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.