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#2
03-07-2005, 10:45 AM
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 Re: Tax treatment of payment from nesco settlement fund brad wrote: - quote - > In 2004 I received a payment from settlement fund of Nesco
It certainly SOUNDS like long term capital gain to me. But> class action litigation. The amount of the settlement is > described as a pro-rata payment for my damages in purchasing > the stock in 2000. In 2001 Nesco filed for bankruptcy, and I > declared the shares as worthless in my tax filing, and took > capital loss. How do I treat my taxes for the settlement > payment in 2004. As ordinary income, or otherwise? I'd certainly have to research it further. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
03-07-2005, 09:29 AM
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| Re: Tax treatment of payment from nesco settlement fund brad wrote: - quote - > In 2004 I received a payment from settlement fund of Nesco
Long term capital gain unless any part of the settlement is> class action litigation. The amount of the settlement is > described as a pro-rata payment for my damages in purchasing > the stock in 2000. In 2001 Nesco filed for bankruptcy, and I > declared the shares as worthless in my tax filing, and took > capital loss. How do I treat my taxes for the settlement > payment in 2004. As ordinary income, or otherwise? identified as interest. The part identified as interest would be ordinary and the rest would be LTCG. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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03-07-2005, 08:50 AM
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| Re: Tax treatment of payment from nesco settlement fund "brad" <sbagchifl[at]yahoo.com> wrote: - quote - > In 2004 I received a payment from settlement fund of Nesco
Probably a capital gain, but since I know nothing of the> class action litigation. The amount of the settlement is > described as a pro-rata payment for my damages in purchasing > the stock in 2000. In 2001 Nesco filed for bankruptcy, and I > declared the shares as worthless in my tax filing, and took > capital loss. How do I treat my taxes for the settlement > payment in 2004. As ordinary income, or otherwise? situation I could be wrong. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
03-04-2005, 12:32 AM
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| Tax treatment of payment from nesco settlement fund In 2004 I received a payment from settlement fund of Nesco class action litigation. The amount of the settlement is described as a pro-rata payment for my damages in purchasing the stock in 2000. In 2001 Nesco filed for bankruptcy, and I declared the shares as worthless in my tax filing, and took capital loss. How do I treat my taxes for the settlement payment in 2004. As ordinary income, or otherwise? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| fund, nesco, payment, settlement, tax, treatment |
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