Line 42 on form 4684 concerning Ponzi scheme losses states enter the interest you received and paid taxes on prior to the discovery year. Line 44 states enter cash you withdrew whether income or principal. Is the withdrawal the same as interest received, and they can just balance out each other as you are supposed to on line 43 add lines 40-41-42 and subtract line 43 from line 44.
ex; if investment 100,00- int taxed 50,000 is the 50,000 considered the withdrawal and your net is 95% of 100,000 or is the amount to claim 95 % of 150,000 ?
