I’ve claimed the Ponzi Scheme Loss last year 2023 as safe harbor: 95% deductible from total investment loss and can be carryover for the next 20 years; in 4684 form - Section C (Casualty & Theft Loss: I invested the cryptocurrency as individual investor to a scam platform, then lost all the money. The scam platform blocked me and disappeared after when I tried to withdraw the money).
As for the tax return this year 2024, where can I claim the Carryforward/over loss?
• Will the Carryover loss continue be claimed as business Net Operating Loss (NOL) as unlimited or it should be claimed as individual Capital loss limit to only $3000 per year in schedule D? I invested myself as an individual investor and lost all the money, NOT that I invested on behalf of or from my business (company, LLC, INC…)
The confusion of IRS law is the Ponzi Scheme Loss is considered as the business investment loss, but not sure if it allows the Carryover Loss for the next 20 years continue to be claimed as NOL unlimited;
or it must be back to individual to be able claiming only $3000 per year infinitely in time (similar to stock loss)?
Thank you so much and I appreciate your helps and time!
Truly,
Hanna
