My brokerage firm filed a claim (on my behalf) in a Class Action litigation on a stock I owned. Then the brokerage firm received in Nov 2024 a distribution from that Class Action and send me the distribution -- LESS a 6% fee. [For illustration purpose, the amount distributed is $100, and the amount I RECEIVED is $94.]
I have sold that securities between the time the claim was filed and the receipt of the distribution.
Now, I received a 1099-MISC from that brokerage firm for the distribution for $100 -- i.e. before the 6% fee.
Since that distribution is related to my investment in a stock, that distribution should be a capital gain. Also, the amount should be $94, the NET amount. The 6% fee should be no different than a commission that reduces the sale proceeds.
How do I adjust the 1099-MISC number to $0 and report $94 in Capital Gains?
Thanks in advance.
