1099-nec

[Anonymous]

received a 1099-nec from a hospital for $36,000 box 1. I am not employed or self-employed by them. the sum was for the selling of my stock (surgery center) to them as they purchased the center.  I bought the stock for $65,000 in 2011.  i want to treat it as investment income as it is a lost. how do i handle the 1099-nec (skip it, put 0 etc.) and can i just enter it in the investment income section?

thanks in advance peter

[LeonardS]

Yes, if this was a stock sale then you want to report it as an investment.  The correct form from the hospital should have been Form 1099-B.  If you have records to show that the amount on the 1099-NEC is from the sale of stock then you may enter it as if the 1099-NEC was a Form 1099-B.  In the description enter "1099-NEC for stock sale" and then complete the rest of the sale data.  This will allow you to enter the sale data correctly.  However, you may receive a letter from the IRS asking why you reported a 1099-NEC as a stock sale.  from what you have posted it appears that you have documentation to support the incorrect reporting.  You may also want to request the hospital rescinds the 1099-NEC and provides you with a 1099-B, and keep that request and response in your tax records