In 2014, we bought 3 $20K life settlements from Pacific West Capital Group. California shut them down for fraud. You can google it if you need more info, class action lawsuit SEC v. Pacific West Capital Group, Inc.
We were part investors in these 3 life insurance policies.
We will receive a 1099-misc for $7683 for 2023 in Jan 2024 from the PWCG
All the life insurance policies for all investors were put into a conservatorship and are being managed until the policies still active pay out. We will get our share when they pay out. There were policies lost before they were put in the conservatorship, so we will not receive our total $60K.
I have already bought 2023 TurboTax to calculate our total income for 2023 to determine how much I can do in Roth conversions. So I need to know if I will be able to write off this income with losses from these investments, and how to show this in TurboTax so the IRS will know this income was loss of capital from these investments?
