On Apr 12, 6:20 pm, "neil" <neilbba...[at]verizon.net> wrote:

- quote -

Is your accounting method cash or accrual? A cash basis taxpayer
reports income as they earn it, not when it is accured. An accrual
basis taxpayer reports income as they are promised it, but get to
deduct the loss if the promise/contract is broken.

Are trusts supposed to issue a K1? Sorry, I have no idea about
trusts.

- quote -

It sounds like a loss on a worthless security, but I have no idea.


- quote -

If you received the money in hand and paid taxes on it, then no
problem.

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In 2005 I received a 1099 from a liquidation trust (other income, box 3)
approx $140,000
This was reported as 2005 income and taxes were paid on that amount.
In 2005 I received a partial payment against the $140,000 in the amount of
$72,000
In 2007 I received a final payment of $40,000 or a total of $112,000.

How do I recover the taxes on the unpaid amount of $28,000?


during the 3 years I had received notice of some taxable income and expense
from the
trust which was reported on the individual years' tax returns. Do any of
these amounts come
into play when determining the over reporting of the total Misc Income from
the trust?

Tia
Neil

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >