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Posted by removeps-groups@yahoo.com on April 17, 2008, 3:36 pm
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> In 2005 I received a 1099 from aliquidationtrust (otherincome, box 3)
> approx $140,000
> This was reported as 2005incomeand taxes were paid on that amount.
Is your accounting method cash or accrual? A cash basis taxpayer
reports income as they earn it, not when it is accured. An accrual
basis taxpayer reports income as they are promised it, but get to
deduct the loss if the promise/contract is broken.
Are trusts supposed to issue a K1? Sorry, I have no idea about
trusts.
> In 2005 I received a partial payment against the $140,000 in the amount of
> $72,000
> In 2007 I received a final payment of $40,000 or a total of $112,000.
>
> How do I recover the taxes on the unpaid amount of $28,000?
It sounds like a loss on a worthless security, but I have no idea.
> during the 3 years I had received notice of some taxableincomeand expense
> from the
> trust which was reported on the individual years' tax returns. Do any of
> these amounts come
> into play when determining the over reporting of the total MiscIncomefrom
> the trust?
If you received the money in hand and paid taxes on it, then no
problem.
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