Karen Lee Posted March 23, 2011 Report Share Posted March 23, 2011 I have two clients with Classaction Lawsuit settlement for charges stemming from SEC irregularities... 1. Client sold stock at a loss in a previous year and received settlement for less than the loss. Do I report this as a gain on Schedule D to offset loss from previous year? If not...where and how do I report it on the tax return if I report it at all. 2. Client has a mutual fund, still has the mutual fund but received a Class Action Lawsuit settlement for SEC irregularities...reduce basis when distributions are taken? Timing problems is the reason for the Class Action Lawsuit. Trucation problem with the name Santiago De Hernandez...suggestions? I can't even remember what I have tried. Lost my sister-in-law Friday and services yesterday...I'm a little off my game. Thank you Karen Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 23, 2011 Report Share Posted March 23, 2011 Karen, I am sorry for your loss. I hope someone more knowledgeable than I about this will chime in. Is there a website that offers any information about the tax treatment of the amounts received for the class action lawsuits? The ones that I have seen this year have had that and I have found somewhat helpful information there. As far as the name problem goes, my guess would be to try Hernandez as the last name but I don't know that either. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 23, 2011 Report Share Posted March 23, 2011 My condolences, Karen Lee... Quote Link to comment Share on other sites More sharing options...
Karen Lee Posted March 23, 2011 Author Report Share Posted March 23, 2011 OK got the name to go........ Now back to the Classaction Lawsuit Settlements.......we aren't talking about the $13.00 kind...these are about $2500.00 and 507.00 Thanks for the condolences...been a tough week. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 23, 2011 Report Share Posted March 23, 2011 I am so sorry to hear about the loss of your sister-in-law. I agree that many of the 'fair settlement' payments have websites that give information on tax treatment. When I can't find information, I have been including the payment on Line 21 (however, I have never had one great than $100, so it seemed just as well to include the income on line 21 rather than spend billable time trying to find illusive information). What was the specific stock and/or mutual fund? Maybe one of us has information. Quote Link to comment Share on other sites More sharing options...
jainen Posted March 23, 2011 Report Share Posted March 23, 2011 >>Do I report this as a gain on Schedule D<< Yes. >>still has the mutual fund... reduce basis<< Yes. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 23, 2011 Report Share Posted March 23, 2011 Sorry for your loss Karen. I agree with Jainen on both treatments. Quote Link to comment Share on other sites More sharing options...
ljwalters Posted March 24, 2011 Report Share Posted March 24, 2011 Again sorry for your loss. As for the name goes--- If the first name is Santiago and the last De Hernandez the just run the last name together with no spaces (DeHernandez). If the last name is Santiago De Hernandez then try the first name plus the first for of the Last (Santiagodehe). I have several of these and these are the ways I have gotten them thru. Linda and buddy. PS you can always call the EFile lhelp line and they will tell you exactly how the want the name. Thats how I got the info. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 24, 2011 Report Share Posted March 24, 2011 Karen, I am sorry for your loss as well. Just to reaffirm, I agree totally with Jainen on both. Our prayers will be with you and your family. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 24, 2011 Report Share Posted March 24, 2011 I'm very sorry for your loss. Yes, report income if the security was sold previously. Reduce basis if still own the security. Quote Link to comment Share on other sites More sharing options...
Karen Lee Posted March 24, 2011 Author Report Share Posted March 24, 2011 Thank you very much...that is 2 more off the desk. Karen Quote Link to comment Share on other sites More sharing options...
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