I'm just not sure how you are getting that interpretation of an NOL going forward. The way I read this is that in order to carry anything forward as an NOL you must justify that you operate an investment business. If you've been buying & selling (trading) for years and did not consider it a business, I'm not sure how the IRS would look upon your sudden investment "business" popping up in 2023 the years you got scammed. On the other hand, if you can't claim a business NOL then I don't think you can carry forward ANY ponzi scheme losses if the losses exceed your income! Most folks probably don't qualify as an investment business, and would be considered traders. My friend had taxable income of $250,000 in 2023, and her Ponzi scheme loss for 2023 was $451,000. When I plugged in the numbers all that happened is that she would get refunded the $37,000 in taxes she had paid in for 2023. And she didn't get to carry the remaining loss forward. Am I missing something here? I sure hope so. But it was a disappointment to see she would only get to get back $37,000 of $451,000 scam losses. PLEASE TELL ME A BETTER WAY TO DO THIS IF THERE IS ONE!
