Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Bought nominee shares in closed C corp (prohibited new investors) using Egypt uncle's funds wired illegally from Egypt early 80's -we thought funds were his sister's who died in 1994. He sued us in 1994 with good proof funds were his. C Corp changed to S Corp in 1998 and paid huge div in 2000 for 20+ yrs retained earnings. Settled out of court w. uncle for amount equal to cost basis shares + $X. We keep profitable shares. Wonder if possible to claim $X as a 2000 tax credit under 'claim of right'per pub 525, p. 27? $X plus 2000 legal fees much less then the 2000 dividend. S corp also paid K-1 distributions. Will hand over to CPA but wanted your off top of head opinion.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.