Previously, IRS announced special relief for victims of fraudulent investment arrangements like Bernard Madoff's Ponzi scheme that was discovered in 2008. I was told that the IRS announced that investors can take an ordinary loss deduction and the deduction isn't subject to the pre-2018/post-2025 2%-of-adjusted-gross -income (AGI) limit on miscellaneous itemized deductions, the income-based limitation on itemized deductions, or the 10% of AGI limitation on the deduction for casualty losses.
Taxpayers can deduct the loss in the year the theft was discovered. This deduction can be taken if the loss isn't covered by a claim for reimbursement or other recovery that has a reasonable chance of occurring.
This is all the info I have. If anyone can tell me HOW to take this deduction, I would appreciate it. I was a victim of an investment scam and lost $20K
