Securities Litigation income

What is the name of your state? Arizona


I have been in several Class Action Securities Litigation that finalized in settlements. One settlement was made in stock and cash. Another two just in cash.

In several cases the settlements were made to my late husband's IRAS which I have inherited. In other cases to The Family Trust. Are any portions of these settlements taxable? and if so, how should they be reported?

do a search on taxable settlements & look for posts by Loku. He's answered this question many times. Here are a couple:

https://forum.freeadvice.com/showthread.php?s=&threadid=124753&highlight=settlement

https://forum.freeadvice.com/showthread.php?s=&threadid=122217&highlight=settlement

Securities

Thanks but none of these postings apply to securities (stocks) as far as I can see. In each of these cases it was involving loss of money due to improper action on the part of the broker. If we claimed the loss on Schedule D I can see paying taxes on those amounts but the ones in the IRAS we could never claim a loss. What do you think my chances are of getting accountable advice from the IRS if I call them? Thanks again.

Don't call. Write & ask for an opinion. You can rely on their written opinion.

Thanks for your advice. I will try that.