Get your taxes done using TurboTax

macuser_22 · ‎June 1, 2020

Sorry, but the TCJA (Tax Cuts and Jobs Act) eliminated casualty and theft losses (other than for certain disaster caused losses) for tax years 2018-2025. Ponzi losses are no longer deductible on a Federal tax return. The form is still there to report disaster losses and for some states that still allow the loss on a state tax return.

The TurboTax interview mode should inform you of that, but if in the forms mode than you are on your own to understand the current tax law. See screenshot. Such losses can only be used as a capital loss to offset capital gains.

See Pub 547 page 2

https://www.irs.gov/pub/irs-pdf/p547.pdf

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**