Tax Refunds from Ponzi Scheme Losses
WATCH THIS 50-MINUTE EDUCATIONAL VIDEO: Tax refunds from Ponzi Scheme losses are extremely valuable. Presented by Richard S. Lehman, U.S Tax Attorney.
Ponzi Scheme Theft And Form 4684 Section B Losses– Has The Trump Tax Plan Made Investment Loss Deduction And Section 165 Losses Less Valuable?
The new Trump Tax plan affects Ponzi Scheme losses to one degree or another. It appears at first glance that one of the few areas of the new law that may have lost value due to the Trump plan from a tax standpoint, is the Ponzi scheme deduction for losses incurred in the scheme. The new Trump Tax plan will make Ponzi Scheme theft losses less valuable to many victims of financial thefts.
For many people their tax refunds from Ponzi Scheme losses may be limited. After having lost assets in the Ponzi Scheme, the victim of the Ponzi Scheme may be very likely to have a reduced fortune, in a lower tax bracket due to the effect of the theft loss.
It could very well be that a Ponzi Scheme victim may have reported income in years prior to 2018 and paid a 50% tax on their false investment profits between city, state and federal income taxes. In the event these taxpayers lost money and have been injured, they now may be in a lower tax bracket and unable to take full advantage of the loss. This is because loss carrybacks have been eliminated as a potential deduction and tax rates from 2018 forward are greatly reduced in many cases. Read full article here.