On Dec 30, 8:28 am, "mort" <M...[at]lccn.com> wrote:

- quote -

Good point. I'd say it is a short term gain because the original
realized loss claimed in 2001 was a short term loss. And the gain can
be used to offset losses. I will try to research what the law
actually says.

Note: if it is Other Income, then it does not get taxed at the
preferential 15% long term rate, nor can it be offset by other capital
losses (which the OP has).

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"Arthur Kamlet" <kamlet[at]panix.com> wrote in message
news:gjc81p$hes$1[at]reader1.panix.com...
- quote -

Maybe someone was celebrating New Year's a little early? ;-)

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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. > << ------------------------------------------------------- >

"Arthur Kamlet" <kamlet[at]panix.com> wrote in message
news:gjbpv0$323$1[at]reader1.panix.com...
- quote -

I asked the same question several years ago and was told it was
miscellaneous regular income.
Last year, in the same situation, my accountant handled it that way also.

I don't know what the right way is, but am just reporting other opinions.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

Barry Margolin wrote:

[snip]
- quote -

identifying the taxpayer's IRA and mailed to the known residence
of the taxpayer. E.g., State Street Bank Trustee, John Smith IRA.

If cashed, it is taxable. If redeposited into an IRA, it is
tax-deferred. When redepositing you need to inform the trustee of
the IRA that it is a settlement and not a contribution. It gets
treated as a rollover. You can deposit it into any IRA account.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In article <gjc81p$hes$1[at]reader1.panix.com> ,
kamlet[at]panix.com (Arthur Kamlet) wrote:

- quote -

The OP should also check whether there was an accompanying letter that
clarifies things.

I received a check this week from the settlement of a case against
Putnam funds. The letter says that some portion of the payment
"represents your share of advisory fees and may be taxable income",
another portion "represents your share of post-judgement interest, which
constitutes taxable interest income", and the remainder "represents your
share of losses due to market timing activity." I infer that only this
last portion is capital gains, the rest is ordinary income.

Also, you asked whether the shares had been in an IRA. Presumably had
they been so, the settlement check should have been sent to the IRA, not
the investor directly. Although I'm not sure how things would be
handled if the IRA account had been closed in the interim.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In article <r3e6l.1854$Es4.579[at]nwrddc01.gnilink.net> ,
Michael B. <mystic02remove_this_part[at]verizon.net> wrote:
- quote -


You're quite right -- it will produce a LT capital gain. And I
knew that but my fingers didn't. And I haven't even had any of
Dick's best Ale or Harlan's real Scotch Whisky. (I don't recall
ever having mead, but that's my loss.)
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In article <barmar-302FA2.20163529122008[at]mara100-84.onlink.net> ,
Barry Margolin <barmar[at]alum.mit.edu> wrote:
- quote -


Doh! No idea how I said what I said here. Of course it's a capital gain.


What I said about sales price being the check amount and basis being
zero is correct. And yields a gain not a loss. Arrggghhh!
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

Arthur:

No, it was not in my IRA account but maybe I need to clarify things:

I originally bought the Enron stock on 11/7/2001 and sold it for the $4,400
loss on 11/21/2001. So I already "realized" my $4,400 (short-term) capital
loss during my 2001 tax year. Now, as it turns out, I got back $1,100 from
that $4,400 loss just a few days ago. This means that I somehow have to
DECREASE my capital loss.

Looking for further help. Thanks!


"Arthur Kamlet" <kamlet[at]panix.com> wrote in message
news:gjbpv0$323$1[at]reader1.panix.com...
- quote -

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In article <gjbpv0$323$1[at]reader1.panix.com> ,
kamlet[at]panix.com (Arthur Kamlet) wrote:

- quote -

Isn't that a capital GAIN, since the proceeds are more than the basis?

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In article <BMd6l.1850$Es4.1092[at]nwrddc01.gnilink.net> ,
Michael B. <mystic02remove_this_part[at]verizon.net> wrote:
- quote -


I assume this was not in an IRA or other deferred plan?

It is a long-term capital loss, shown on schedule D. Use your original
acquisition date as acquisition date, and the check date as sales date.

Sales price is the check amount, and basis is zero.

It will increase your capital losses.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In 2001, I had a realized loss in an Enron stock in the amount of $4,400
(short-term capital gain loss).
A few days ago, I received a check in the amount of $1,100 as part of a
litigation settlement with Enron.

I have to show this "gain" of $1,100 on my 2008 tax year filing, but where?
If it's on Schedule-D, how do I enter the transaction so that I have a
"gain" of $1,000 for this particular security. What date of buy/sell would
I enter? Also, this is now a "long-term capital gain"?

In addition, although I will have a positive short-term gain in the year
2008, I have a bigger amount "carry-over" loss from 2007 and will still have
a negative number that will go into 2009. How does my $1,100 Enron
settlement gain go against that?

Any help would be appreciated.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >