TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 1

Question

PONZI Scheme Loss

Forum|Forum|3 years ago
January 30, 2023
2 replies
0 views

There appears to be many different opinions on whether a Ponzi scheme loss can be deducted or not. My loss was $65,000 in 2022. Can the loss be deducted or not?

Thanks,

Level 15

From the IRS.

https://www.irs.gov/newsroom/help-for-victims-of-ponzi-investment-schemes

Level 15

there are some tricky rules but yes it is deductible. it's reported on form 4684. there are certain elections that need to be made. use the casualty and theft worksheet and review rev proc 2009-20 (scroll down to get to it) to see if you want to use it

https://www.irs.gov/irb/2009-14_IRB#RR-2009-9

section C of 4684 is when you use the Rev Proc

read page 7 of the 4684 instructions

https://www.irs.gov/forms-pubs/about-form-4684