@Justin202203 Syndication costs are not deductible. They have to be amortized over time, as @AliciaP1 says above. However, I am not sure why you are paying syndication costs from your lawsuit proceeds. Those costs are usually associated with marketing a fund, not disposing of one, so I recommend that you consult with a tax professional about this issue.
As far as the lawsuit proceeds go, until you are clear on the syndication cost issue I would not finish your tax return. If you feel that you must then Cynthiad66, @DawnC and @GeorgeM777 have all told you how to report the $3000 that is over and above the return of principal that you received. Follow their instructions.
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