My stock broker started trading my account on margin and incurred significant losses, resulting in a large capital loss carryforward, $400,000. I sued and ending up going to arbitration before the National Association of Security Dealers. I was awarded $550,000. I asked the folks who did my tax return last year, Paynomore Taxes, and they weren't sure how to handle the $550,000 relating to these losses. Can you help?
2007-04-14 08:50:04 · 3 answers · asked by strawberry2007 1 in Business & Finance ➔ Taxes ➔ United States
Did you have an attorney representing you? If you did, check with him/her about the nature of your award. Believe it or not, the wording of the settlement means everything in terms of how this award is taxed. If it's considered "compensatory", for instance, it's not taxed. But, more than likely, this award is a combination of compensatory and punitive: that's why you're going to need a highly skilled CPA or tax attorney to help you with this one. As much as this pains me to say this, I think a tax attorney is a better choice than CPA for this, simply because reading the terms of the award might be difficult for your basic CPA.
I'm glad to hear, though, that your broker got nailed for that kind of thievery. That will certainly stop others from being swindled the way you were.
2007-04-14 09:48:37 · answer #1 · answered by SuzeY 5 · 0⤊ 0⤋
Good grief, with money like that at stake, go to a CPA, not someplace like you went. Even most CPA's will have to research this one a little, but at least they'll know where to look.
2007-04-14 16:00:47 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
paynomore taxes? isnt that the company that convinced wesley snipes to not pay his taxes & then got him convicted of tax evasion?
2007-04-14 16:05:54 · answer #3 · answered by Unit 30 2 · 0⤊ 0⤋