Question 1. Ponzi Scheme victims may be entitled to a theft loss deduction. What is considered a theft loss? larceny, embezzlement, and robbery A stock loss in the stock market because of excessive earnings paid to an incompetent corporate officer…
Blog Archives
Taxation of the Clawback in a Ponzi Scheme
VIDEO: Taxation of the Clawback in a Ponzi Scheme – Maximum Tax Recovery Total presentation time: 01:32:07 by Richard S. Lehman, Esq. This article unfolds in an interesting fashion. Every item we cover in this article is a building block…
Posted in Domestic Taxation, Ponzi Scheme, Clawback, Refund of Losses Tagged with: clawback, ponzi scheme, richard s lehman, tax loss
Favorable Tax Consequences – Ponzi Schemes And The Clawback
What is less familiar is the fact that an investor in a Ponzi Scheme cannot only lose all of their investment. Investors in Ponzi Schemes can also be forced to pay back additional moneys earned from the Ponzi Scheme years before it exploded. This is what is known as a clawback.
Ponzi Schemes and Theft Losses - What to do if there is NO Safe Harbor?
With the right evidence and the law on your side, theft losses from Ponzi schemes can lead to the same refunds as the Safe Harbor and even more, since interest will be paid on the refund from the time the taxes were paid in certain situations. This might not occur under the Safe Harbor, the Taxpayer may be better off without the Safe Harbor in many situations.
“The best rule to follow in the field of tax law is to plan legal matters and obtain precision advice in advance to insure commercial endeavors are completed at minimum tax costs and personal lives are minimally disrupted.” - Richard S. Lehman, Esq.
