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If this is your last and only settlement payment the rest of the investment will be treated as worthless security. You will report the distribution as sales proceeds on Schedule D (form 8949), your purchase date will be the purchase date of the original investment, selling date will be the date on the settlement check and your basis will be your original investment plus brokerage fees.
For instance if your purchased the securities 4 years ago for $4500 plus $50 broker commission and last month you received check for $2000, assuming this is the last and only check you will receive, you will report the transaction as followed.
Purchase date: Oct 25, 2011 (or you can use various if it is more than one year and you don't know exact date)
Cost basis: $4550
Selling date: Sep 25, 2015 (date of the check)
Capital Gain/Loss (2550)
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