Quote Originally Posted by Roland Slugg View Post
Several of the above replies say there is not enough information, but I think there's enough to answer the OP's main question. The amount received is all taxable income.

Well, if she received the settlement proceeds in 2017, then yes.

Almost certainly. If a portion of the settlement was designated as payment for her p'ship interest, then that portion would be taxed as a capital gain ... less her basis in the p'ship interest, if any. It's conceivable that some (or all) of the settlement was for income earned but not received, and if that's true, then that portion would be classified as SE income and, thus, be subject to the SE tax in addition to its being ordinary income.
Hi Roland,

Thank you for your comments and help!

Carl Allen, CFE