Hi Robert,
Thank you so much for your reply. Could you please help to share where can I refer to the IRS code or rules for that?
And could you please also kindly help to check if the numbers changed as below?
"The original investment cash in 2013 in Partnership is $53,000( Which included Syndication fee $3000). K-1 shows capital account was $42,000 in 2017 year end, and $42,000 at the beginning of 2018 before the liquidity event, and capital account was $0 at the end of 2018 after liquidity event, but the cash I received was only $45,000. And after lawsuit 2021, I received court settlement $10,000. The original investment cash in 2013 in Partnership is $53,000( Which included Syndication fee $3000)".
And it was confirmed that this $10,000 settlement "considered to be a partial collection of class member's interest in the original property".
If in this case, which amounts should I compare to report gain or loss? And if gain, is that capital gain?
Thanks again.
