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Posted by g20zoom on March 6, 2007, 6:22 am
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For my CHTR stock, I joined a class action lawsuit. In
return, I was sent a mere $20 check a long time later. It
came in 2006.
Does anyone know where I should report this on my 1040? The
check had some stub to say it should be taxed, but I didn't
receive any end of the year form, so I'm lost where to put
it.
Thanks in advance!
-joe
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Posted by Benjamin Yazersky CPA on March 7, 2007, 5:08 am
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> For my CHTR stock, I joined a class action lawsuit. In
> return, I was sent a mere $20 check a long time later. It
> came in 2006.
>
> Does anyone know where I should report this on my 1040? The
> check had some stub to say it should be taxed, but I didn't
> receive any end of the year form, so I'm lost where to put
> it.
its an offset to your loss in the stock
so, if you sold it, the $20 recovery would be a capital gain
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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Posted by g20zoom on March 8, 2007, 12:23 am
Please log in for more thread options > its an offset to your loss in the stock
>
> so, if you sold it, the $20 recovery would be a capital gain
I did not sell the stock (very unfortunate)....so is it
still considered a gain? or can I just leave it off my
taxes?
Thanks again
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Seth Breidbart on March 10, 2007, 3:08 am
Please log in for more thread options >> its an offset to your loss in the stock
>>
>> so, if you sold it, the $20 recovery would be a capital gain
> I did not sell the stock (very unfortunate)....so is it
> still considered a gain? or can I just leave it off my
> taxes?
I'd consider it a reduction in basis (so not taxable now,
but reduces your capital loss or increases your capital gain
when you do sell).
Seth
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Mark Bole on March 10, 2007, 3:08 am
Please log in for more thread options >> its an offset to your loss in the stock
>>
>> so, if you sold it, the $20 recovery would be a capital gain
> I did not sell the stock (very unfortunate)....so is it
> still considered a gain? or can I just leave it off my
> taxes?
To be treated as a capital gain, the proceeds from the
lawsuit (less any attorney fees) would have to be clearly
and directly tied to a previous capital loss.
Not knowing the exact nature of the lawsuit, the most likely
answer is that the $20 is "other income" on line 21 of your
form 1040, and yes you do have to report it, even though the
payer was not required to send you a year-end tax form.
-Mark Bole
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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