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TurboTax does not support ponzi-scheme situations.
Under the IRS rules, an investor in a Ponzi scheme is entitled to deduct his or her losses as a theft loss, instead of a capital loss from an investment. This is good for the investors because the deduction for capital losses from investments is normally limited to a maximum of $3,000 per year.
The IRS provides two items of guidance to help taxpayers who are victims of losses from Ponzi-type investment schemes.
From my CPA: The 2020 trump CARES act will now let you carry the loss from 2018 back 5 years. We need to see if that is desirable. To do so we will need copies of your 2013-2017 tax returns. Carrying the loss back would be very beneficial for a high income person and not so much for a low income person.
Also allows the 2018 loss to show as a carry forward.
ttlc link does not work. refers back to turbo tax.
That post is more than 3 years old so the link is dead.
Thanks and correct. I had to hire a CPA for my ponzi exposure. The CPA was able to go back 5-years and collect all taxes paid using the "Covid National Emergency" Act. Turbo tax was not helpful in a ponzi situation, but it did force me to get professional help
Hello,
I have involved in a Ponzi-Scheme and I am looking for a CPA. I lives in California.
Could you share your CPA's information? How does he/she charge?
Thanks,
Allan
I could never find anyone to help me with the Ponzi scheme I was sucked into. I found that, after researching on my own, that I knew more than these so called 'professionals".
Try to read the IRS publications on Ponzi schemes several times. Then try to get an appointment to visit your local IRS office and review it with them. You should be able to deduct this as a theft loss.
Turbo Tax should get itself together and help its customers with Ponzi scheme losses.
I've been using TT for years, 7 yrs ago they told me to just put it under Casualty and theft using the safe harbor form, it us very easy been doing it now fir over 7 yrs
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