It is a form 1099-MISC. I made a $50K business investment in 1 Global Capital but they filed Chapter 11 bankruptcy about 14 months later. The bankruptcy court authorized a 40% initial recovery of the principal investment from the reconstructed business. The first check was for $20K. It is uncertain what future checks might be, if any. The $20K was reported on the 1099-MISC. I need a way to offset the payment to reflect a capital investment loss of the same amount. I think the answer is to enter the amount as a loss on line 6 of Schedule C. If I do this the net gain comes out to be zero, which is the correct answer.
