So the answer provided seems to be reasonable about when the settlement claim was received; the problem is that the impact of the loss claims for this stock and others sold in 2023 has a carryover balance for subsequent years. Unless the cost basis for the stock bought in 2017 and sold in 2023, when the company's new owner made it private, is modified by an amended return for 2023, that carryover is not changed. In addition, the directions about the 1099 creation for 2024 are not straightforward to a novice.
I have been reading various articles prepared by Tax lawyers about the "Tax Benefit Rule" to seek a close example to this situation. Nothing quite aligns yet.
I also have a Tax Advisor CPA recommend the above -described change to the 2023 cost basis with an amended return.
Clearly there are alternate approaches.
