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#3
01-19-2006, 01:30 AM
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 Re: Tax treatment of securities litigation settlement - quote - > > > > On November 8th, 2005 I received a securities litigation
Suppose that in 1996, the taxpayer had a net short-term> > > > settlement of $63.41 on 700 shares on Teletek which I > > > > originally purchased on 04/15/96 and later sold 07/17/96. > > > > When I do my taxes for 2005 how do I account for this > > > > income? > > > I would report it as long term capital gain income. > > I notice that the shares were held short-term. Presumably > > they were sold at a loss, but if there were other short-term > > gains that year, the taxpayer might well have had a net > > short-term gain for the year. In that case, would it be > > correct to treat it as short or long term? > Yes. I missed the fact that the buy and sell took place in 1996. > The character remains the same. Treat it as a STCG. capital loss, but a larger long-term capital gain. In that case, had this income been received in 1996, it would have increased the overall long-term capital gain amount by the time the netting was done. Is it still short-term gain today? Seth << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#2
01-18-2006, 04:46 AM
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| Re: Tax treatment of securities litigation settlement - quote - > > > On November 8th, 2005 I received a securities litigation
Yes. I missed the fact that the buy and sell took place in 1996.> > > settlement of $63.41 on 700 shares on Teletek which I > > > originally purchased on 04/15/96 and later sold 07/17/96. > > > When I do my taxes for 2005 how do I account for this > > > income? > > I would report it as long term capital gain income. > I notice that the shares were held short-term. Presumably > they were sold at a loss, but if there were other short-term > gains that year, the taxpayer might well have had a net > short-term gain for the year. In that case, would it be > correct to treat it as short or long term? The character remains the same. Treat it as a STCG. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#1
01-17-2006, 01:27 AM
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| Re: Tax treatment of securities litigation settlement - quote - > > On November 8th, 2005 I received a securities litigation
I notice that the shares were held short-term. Presumably> > settlement of $63.41 on 700 shares on Teletek which I > > originally purchased on 04/15/96 and later sold 07/17/96. > > When I do my taxes for 2005 how do I account for this > > income? > > > As Always Thanx in Advance, > I would report it as long term capital gain income. they were sold at a loss, but if there were other short-term gains that year, the taxpayer might well have had a net short-term gain for the year. In that case, would it be correct to treat it as short or long term? Seth << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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01-11-2006, 10:48 AM
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| Re: Tax treatment of securities litigation settlement rxp2158[at]ix.netcom.com wrote: - quote - > On November 8th, 2005 I received a securities litigation
I would report it as long term capital gain income.> settlement of $63.41 on 700 shares on Teletek which I > originally purchased on 04/15/96 and later sold 07/17/96. > When I do my taxes for 2005 how do I account for this > income? > As Always Thanx in Advance, << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#-1
01-10-2006, 04:12 AM
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| Tax treatment of securities litigation settlement On November 8th, 2005 I received a securities litigation settlement of $63.41 on 700 shares on Teletek which I originally purchased on 04/15/96 and later sold 07/17/96. When I do my taxes for 2005 how do I account for this income? As Always Thanx in Advance, << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
| Tags |
| litigation, securities, settlement, tax, treatment |
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