@schmange21 wrote:
Perhaps if you don't mind, can I got a bit further and explain a little more in detail what is going on? They split the settlement between my partner and I. Since we are not married they separated both of our 1099's so we each got a 1099 for $74,000 (so $148,000 total). We file separately since we are not married. We each will have one 1099 for our tax return. If we use the capital gain option, I assume I should split the cost of the car when we both purchased it to put on the line for the tax return?
Were you co-owners of the car? Either both on the title, or both on the loan, so that you both had what is called a constructive interest? If you were co-owners, then you each sold half the car. Each of you will report half the cost as your cost basis.
