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Posted by Arthur Kamlet on January 1, 2007, 12:09 am
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> How is a payment for settlement of WorldCom claims to be
> handled as far as US income tax is concerned? The original
> investment was sold at a loss in previous years, and a
> capital loss taken.
>
> I can see either refiling the the tax return of a few years
> ago, or else calling it a capital gain in the current year.
> Is either one of those options correct?
If the loss has been taken, the settlement is added as
Schedule D income, either long or short term corresponding
to the loss you claimed.
I have been entering this on Sch D as WorldCom Settlement -
Additional Gain: $xxx
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Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
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