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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: VincentTH who wrote (464)	1/15/1998 10:34:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

That is a tough one! To be technically CORRECT you'd have to determine EXACTLY how you got the extra $3,000. If they canceled and rebilled the trade $3,000 higher, then IMO you report it in 1997. If on the other hand they paid you a consideration for a screw-up you report the fee as ordinary income on the day you received it. You might sucessfully argue this is a capital gain since the underlying transaction was capital. . BUT I'd report it in a PRACTICAL sense. I'd wait for the 1099B from the Brokerage and tie my Sch D into that. . Colin