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Posted

This question has come up several times recently, and while the consensus was that it should be a capital gain item, we had no clear cite. IRS recently issued PLR 161356-05 available at http://www.irs.gov/pub/irs-wd/0724012.pdf. While it can not be cited, this ruling clearly lists the authority that they used to reach the determination, which should give us a clear map to cites to defend the reporting of the settlement as a capital gain item.

Posted

Isn't this forum lovely!!!???. I asked this question about a month ago and JOHNH gave me good information about my problem and now KC put the icing on the cake!!! Thank you both.

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