Opus 17,
If I receive a 1099 for the $40k settlement in 2022 and traded in the car in 2022, would I still need to report the 1099 income in my Form 1040 as well as the long term capital gain when I traded in the car?
Would the 1099 Misc income be entered, as some have suggested, as proceeds from a law suite settlement $40k, then under Misc Rev and Exp as less common revenue as a negative amount ($40K), thus netting it to zero for income reporting purposes? In addition would I also record the net gain (the example was $16k) on the sale of the car as a long term asset? Thank you for your help!
