Appreciate all the helpful details, its been painful digesting all the new terms (and I went to school for accounting, but am not a CPA).
I am also a victim of a ponzi scheme not to dissimilar from what @madmanc20 detailed. Additional context:
Discovery year: 2025
News articles and SEC report its a ponzi-scheme: yes
We received dividend payments monthly based on the investment amount, for 2 years prior to the discovery year. Then during the discovery year, received monthly dividends through May 2025.
(1) My first question is what to do with the dividend payments received in 2025? Is this income? Is this capital gains like I reported in prior years? Is this recoveries? I received no tax forms reporting the money, the only record I have that I received is my bank statement.
Do I need to reduce the deductible loss theft by the 2025 dividends?
(2) Then just to confirm - I put this amount from form 4684 on Schedule A line 15 "Casualty and Theft Losses" because that isn't on line 18 from form 4684 which is what Schedule A specifically says. Also I will definitely have greater total itemized deductions than my AGI, so it sounds like I need to figure out the NOL? Is that completely separate from Schedule A or compatible? Would I fill out both?
Thanks all!
