Freddie Mac Litigation Proceeds

Howard A Fabry on

Last year our club received $13.65 from a settlement of
Freddie Mac Securities Litigation. I recorded that as
Miscellaneous Income using Bivio and reported it as Other
Portfolio Income on the 1065 Schedule K. I also produced
K-1's for the members with that income reported as Part III
, Box 11, Other Income, Code A. Now I am trying to complete
my own return and am at a loss as to where to report the
income. Help!!!

Howard Fabry, Treasurer
Univestors LLC

Rip West on

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Last year our club received $13.65 from a settlement of Freddie Mac Securities Litigation. I recorded that as Miscellaneous Income using Bivio and reported it as Other Portfolio Income on the 1065 Schedule K.

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Whenever you are tempted to enter something as Miscellaneous Income, count 10 and think again. If you are still tempted, just don't do it, and inquire on this forum. The settlement amount should have been recorded as a capital gain.

Rip West
Saint Paul, MN

Howard A Fabry on

I take it that means I need to file an amended Tax return
with corrected K-1's for our club?

Howard A Fabry on

Howard A Fabry wrote:
> I take it that means I need to file an amended Tax return
> with corrected K-1's for our club?

How do I enter the proceeds as a capital gain in Bivio?

Rip West on

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I take it that means I need to file an amended Tax return with corrected K-1's for our club?

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Well, it's up to you, but I would think twice before telling all my members to file amended returns because their share of a $13.65 income item was misclassified.

Rip West
Saint Paul, MN