Had investment in co. that went bankrupt. Wrote off as a capital loss in 2011. 2017 received a 1099-B for small %. What do I do with this 1099-B now? Cap gain?Reg income?

[flyernick]

Company (ABFS) actually went bankrupt in 2005. Final court settlement was just last year. I hadn't expected to ever get anything, but got a small amount from the court settlement (under 5% of principal). I'm not exactly sure of the year I took the capital loss (I can't find my 2011 tax return). 

So now I got this small amount. Do I declare it regular income, or a capital gain from a $0 basis?  

[MichaelL1 · Accepted solution]

You have a 1099B so it will need to be reported under investments sale.

You are correct the basis will be $0 as the amount (or cost basis) of investment is already written off.  You don't need to find the 2011 return as long as you know it was written off, no one will disagree when you use the $0 basis. 

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