How is a payment for settlement of WorldCom claims to be handled as far as US income tax is concerned? The original investment was sold at a loss in previous years, and a capital loss taken. I can see either refiling the the tax return of a few years ago, or else calling it a capital gain in the current year. Is either one of those options correct?
>
>
>
>
>
>
>
>
>
If the loss has been taken, the settlement is added as Schedule D income, either long or short term corresponding to the loss you claimed. I have been entering this on Sch D as WorldCom Settlement - Additional Gain: $xxx __ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
Have something to add? Share your thoughts — no account required.
Ask the community — no account required