"Dennis G. Rears" <drears[at]runningpagespam.org.lga.highwinds-media.com> wrote:
- quote -

If it didn't affect your tax, don't bother.

Ah, yes, if you hold onto a stock that has lost big, it
isn't "really" a loss, since you didn't sell it. A common
investing mistake. At this point, sell them to realize the
loss. You will report it on Schedule D next year. Up to
$3,000 of losses in excess of capital gains can reduce your
taxable income each year, with the excess available in later
years.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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"Thomas Healy" <tomhealycpa[at]earthlink.net> wrote:
- quote -

1oops, you are right. I checked my quicken file and did recieved a check for
$26.98. Using TurboTax I added it to other income. It did not affect my
tax liability. Do I need to file a 1040X for tax year 2004? BTW, this took
me about 90 minutes. Does the IRS really care about trivial amounts?

1I have LU, AV, and Agere stock. I have lost money on all of them. I will
sell them by the end of the year. I dread he thought of spending time on
them. If I have a lost do I declare the sale?

dennis

dennis

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"Dennis G. Rears" <drears[at]runningpagespam.org.lga.highwinds-media.com> wrote:

- quote -

And you didn't get the earlier one last December? It was
about 3 times bigger (big deal!). Usually these shareholder
lawsuits are for recovery of stock losses. So I would report
them as capital gains (probably long-term). In my case it
was inside an IRA, so I didn't have any reporting to do.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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Rick Merrill <rick0.merrill[at]gmail.com> wrote:
- quote -

Or should it be a Capital Gain as adjustment to a previous
Capital Loss on the stock? (Sure, that amount is trivial;
but what about someone in the same position but with a much
larger amount at issue?)

Seth

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Rick Merrill wrote:
- quote -

Better idea: If you have sold your shares before receiving
this check, you should include it as a capital gain - NOT
ordinary [other] income.

I don't know the details of this class-action suit.

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Dennis G. Rears wrote:

- quote -

Why not just list it as "other income?"

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- quote -

No. Declaring it as additional _wages_ would complicate your
taxes. Put it on 1040/line-21 Other income.

--
To reply to me directly, remove the CLUTTER from my email address.

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Dennis G. Rears wrote:

- quote -

This was not wages, so doesn't go on that line 7. Look
instead for one like line 20, 21, maybe, called "other
income". Not cashing the check does you no good, since the
amount will most probably be reported to IRS anyway.

ChEAr$,
Harlan Lunsford, EA n LA

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I just received a check for $12.72 (I know very trivial).
This is in response to the Lucent Technologies vs.
Securities Litigation class action lawsuit. I also received
a 1 page letter that said they would not advise us on tax
implications. On my 2005 tax return can I just include this
as additional wages? Could I not just cash the check? My
primary concern is I don't want to complicate my taxes any
more. BTW, I file my own taxes using Quicken.

dennis

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