@JeffR195459 wrote:
My question is, can I claim my loss as a theft and thus claim the entire loss this year? Other wise, my understanding is that I can only claim a carry forward loss to the tune of $3,000 per year. At that rate, my loss will outlive me.
Thanks for any help.
Ponzi scheme losses may be deducted. Other theft and casualty losses are not deductible unless associated with a federally declared disaster. You may want legal or tax advice to determine if this is a Ponzi loss, not all Crypto scams would meet the required legal definition although some would.
If this is a schedule D investment loss, you could adopt a personal investment strategy that would create lots of capital gains (instead of dividends or interest), and keep cashing them out. You could create several years of tax-free gains. (Your investment goals and strategies might be very different from someone not in your position.)
