"Seth Breidbart" <sethb[at]panix.com> wrote:
- quote -

its a recovery of an item previously deducted on a prior
year's tax return so the recovery takes on the same status

if it was a short term capital gain or loss, then the
recovery is a short term capital gain

if it was a long term capital gain or loss, then the
recovery is a long term capital gain

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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Benjamin Yazersky CPA <johndoe[at]nowhere.com> wrote:
- quote -

Even if it was a short-term capital loss when sold?

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. > << ================================================== ===== >

"Jeff Wisnia" <jwisnia[at]conversent.net> wrote:

- quote -

long term capital gain is correct

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

<< ================================================== ===== > << 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. > << ================================================== ===== >

Five years ago I sold some shares of stock at a loss and
summed that loss into my 1040 Schedule D capital gains for
that year.

In 2006 I received a settlement check for about $800
resulting from a class action suit against the company whose
shares I'd held.

Is it proper for me to show that settlement payment amount
as a long term capital gain for 2006? If not, how should it
be declared?

Thanks,

Jeff

--
Jeffry Wisnia
(W1BSV + Brass Rat '57 EE)
The speed of light is 1.8*10^12 furlongs per fortnight.

<< ================================================== ===== > << 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. > << ================================================== ===== >