I have a 1099-misc from a lawsuit against a company for a fraudulent investment where we did not get our money back, and if we do get any money back it will not be near what we paid. I should be able to counter the income from the 1099-misc with the losses on the investment. I had not written off the investment yet since we will at some point get part of the money back. This 1099-misc will not make us whole so there will be some more losses once we know how much might get returned to us. Where do I, and how do I show theses losses. I don't want to write off all the losses since we might get some of it back. How can I show the losses for the amount of the lawsuit in turbo tax where they will cancel each other and the IRS will know the lawsuit was for loss of our capital on an investment? Thank you.
