I received a pro rata share of a securities litigation fund that is a "Qualified Settlement Fund". Do I treat this income as a capital gain, 1099-misc or something else?

I file the long form. The Qualified Settlement Fund" as defined by Tres. Reg. Section 1.468B1 through 5. It is a settlement from a securities litigation lawsuit. I was wanting to know if I treat this income as a 1099-misc, a capital gain or some other method. If you would like a copy of the cover sheet that came with the check, I can send it.

1523

New Member

Jun 6, 2019 8:31:15 AM

Not rep orted to you on a Form 1099- MISC? Not compensation for actual damages?

See instructions for:

Where do I enter an award from a taxable legal settlement?

(Please update this post with a comment if the payment was compensation for actual damages).

Why sign in to the Community?

I received a pro rata share of a securities litigation fund that is a "Qualified Settlement Fund". Do I treat this income as a capital gain, 1099-misc or something else?