It's not that simple because it is a Ponzi scheme and you will collect money based on your first question.
- Understanding any money received in a future year will be income, you can use the 4684 to enter your Ponzi investment loss in 2023* using Form 4684, Section C. Based on parts of your question you know what the loss is that you sustained (only amounts previously reported as income), this is your loss assuming you have not yet received income repayment.
- *Assumptions that your total loss was declared and used in the court case in 2023 or you have other definite evidence.
- This will be carried to your Schedule A and included with other itemized deductions.
Note: If you know the amount of any collections/repayments for 2024, then your loss should be reduced by those specific and definite amounts on the 2023 tax return.
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