The other possibility is special rules relating to Ponzi schemes. The problem is, I can't find a definitive statement on whether or not Ponzi scheme losses are still allowable even though general theft losses are not. (This is complicated because investment losses are deductible, and theft of personal property is not deductible, but Ponzi schemes are in between.)
You may want to see a tax professional. Also, Ponzi losses are not supported by Turbotax, so you will have to figure it out yourself using the IRS revenue procedures.
https://www.irs.gov/newsroom/help-for-victims-of-ponzi-investment-schemes
The IRS provides two items of guidance to help taxpayers who are victims of losses from Ponzi-type investment schemes.
- Revenue Ruling 2009-9 provides guidance on determining the amount and timing of losses from these schemes, which is difficult and dependent on the prospect of recovering the lost money (which may not become known for several years).
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Revenue Procedure 2009-20 simplifies compliance for taxpayers by providing a safe-harbor means of determining the year in which the loss is deemed to occur and a simplified means of computing the amount of the loss.
