@schmange21 wrote:
How do I show the capital gain with the 1099-Misc?
Don't enter the 1099-MISC in the section where it would normally go. Instead, go to the section for "sale of stocks, investments and other property." Choose "something else". Treat the car as though you sold it for the price of the settlement. When you enter the purchase price (cost basis) and date of purchase and date of sale, the portion that is a taxable gain will be calculated as either a long or short term gain. Save the 1099 and your other documents for three years in case the IRS sends a letter to ask for clarification.
