Discussion:Class action suit receipts...
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Class action suit receipts...
| 16 April 2007 | |
| A guy came to see me last week. He has not filed returns for 6 years, however, he had very little income during that time. In 2006 he received $ 255,000 from a class action lawsuit relative to a sole proprietorship he operated in the late 1990's. Approximately $ 150K of this is interest and $ 100K is proceeds from the lawsuit. It appears to me that the taxpayer deducted most if not all of the $ 100K from his schedule C income in the 1990's. Now that he has been reimbursed he not only has ordinary income but self-employment tax to pay on the proceeds does he not, even though the business is no longer operating? | |
To join in on this discussion, you must first
log in.
