1

Suppose that an investor has owned the XYZ stock for a long period of time. It is then taken over by the ABC company and the investor has a long term capital gain. A couple of years later, a class action suit occurs and it is determined that the ABC company did not pay enough for the XYZ company. The investor then receives money from the law suit. I claim that money is taxable as a long term capital gain. Am I right?

Note: XYZ and ABC are fictional companies that I made up.

3
  • "couple of years later" is bad: the statue of limitations for most crimes that could determine such are only 2-5 years.
    – Trish
    Commented Feb 18, 2023 at 18:21
  • All income is taxable - whether its a capital gain requires a deeper understanding of the tax code than I have.
    – Dale M
    Commented Feb 19, 2023 at 0:36
  • @DaleM Can you tell me what area of the tax code to look at?
    – Bob
    Commented Feb 19, 2023 at 0:59

0

You must log in to answer this question.

Browse other questions tagged .