Hi There,
I got reply: "The settlement should be considered to be a partial collection of the lass member's interest in the original property."
I summarized the case back ground below :
I had an investment $50,000 for partnership, and received loss K1 most of the years, then the partnership said they will merge with other company, and ask me to agree to get cash $45,000 consideration. And I received $45,000 in 2018, my CPA booked the loss in 2018. After lawsuit they paid me settlement $8,000, should I report this $8000 as capital gain? Or $3000,(8000-(50,000-45,000) as capital gain?
Or how should I report it?
Thank you very much.
