WebJun 5, 2024 · You are allowed to claim an Itemized Deduction for Theft Loss in Schedule A. Since you were the victim of a Ponzi Scheme this theft loss is not limited to the $100.00 … WebApr 15, 2024 · Ponzi losses claimed as a theft loss: An investor taken in by a Ponzi scheme can deduct the lost funds as a theft loss instead of as a capital loss from an investment. …
Fraud: Tax guidance for fraud victims Our Insights
WebNov 2, 2024 · The first part of the analysis for the deductibility of a ponzi loss is whether the ponzi constitutes a theft. For tax purposes, theft is defined broadly as “any criminal … WebDec 3, 2010 · On September 24, 2010, the IRS released a letter (the “Letter”) addressing the availability of tax deductions for Ponzi scheme losses relating to assets held in individual retirement accounts (“IRAs”) or similar tax-deferred investment vehicles and assets held by charitable trusts. The Letter refers to Revenue Ruling 2009-9 for the general tax treatment … fishman ink400
Ponzi Schemes And The Theft Loss Deduction - Tax Blog
WebOct 1, 2016 · The IRC’s section 165 theft loss provision provides Ponzi victims some solace by allowing a deduction on the taxpayer’s federal income tax return for ... Armed with an … Webstates have adopted specific guidance regarding the tax treatment of Ponzi losses. Some states base taxable income on federal AGI with no allowance for itemized deductions. In … WebJul 2, 2009 · Here’s what to do: Step 1: Trust your life savings to a man who seemed nice at the Beth-El potluck supper. Step 2: Find out that the nice man is in fact a demon who took … fishman infinity matrix