Can You Deduct Fraud Losses? Tax Rules for Scams & Ponzi Schemes
Download MP3In this episode, we discuss:
- Whether victims of Ponzi schemes, scams, or online fraud can deduct their losses on their taxes
- How tax rules treat profits from fraudulent investments
- The IRS procedure for determining fraud-related losses (26 CFR Section 165)
- Why the timing of the fraud case matters for tax deductions
- Lessons from major fraud cases like Bernie Madoff and FTX
- The importance of consulting a tax professional for guidance
- Why you may need to file a tax extension in fraud-related cases
- The balance between asset recovery efforts and tax implications
Disclaimer: This is not legal or tax advice. Always consult a tax attorney or accountant for specific guidance.
Tune in now to learn how fraud losses can impact your taxes!
