Can You Deduct Fraud Losses? Tax Rules for Scams & Ponzi Schemes

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In 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! 
Can You Deduct Fraud Losses? Tax Rules for Scams & Ponzi Schemes
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