Class Action ESOP

[RLymanC]

Taxpayer recieved $15,000 from a class action law suit.
The pay out was for shares of stock the company issued to it's employee's. ESOP

Each employee has X number of shares valued at $6.10 per share. The employee had no investment in these shares.

He was issued a Form 1099-MISC Box 3 "Other Income".

Would line 21 be OK,,,my thinking is schedule D with no basis.

[Brad Imsdahl]

Are you saying this person received stock, not cash? In other words, the stock has not been sold yet?

If that is the case, the value of the stock from the 1099 would go on line 21, and then reported on Schedule D after the stock is sold.