To clarify by previous statement there is not capital gain included in this settlement based on many comments in the thread. Here is my previous answer for you.
'There is no capital gain or loss in your situation. You have received a return of capital on your investment in the partnership. Currently, with all settlement money received you have nothing to report. As indicated by our awesome Tax Champ @macuser_22: 'That has nothing to do with any additional expenses you might have had. You do not need to report a refund of your own money. Personal losses are no longer deductible from 2018-2025.'
The additional expense would not be an allowed deduction during the period mentioned.'
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