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I signed an agreement to loan silver for a rate of interest and able to have my investment returned after one year. Was clearly a scam and I lost my silver. I was told i could file a casualty and theft on Sch A, but looks like its subject to a 10% AGI deduction. i also was told that if related to a ponzi sceme and i filed a timley tax return that could waive the 10% AGi ded. Any thoughts.
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Tax Professional Answers
Edward Bender
If it truly was a Ponzi scheme, the loss would be taken on a Schedule D and not a Schedule A. If you leave it as a casualty loss, it would be subject to the 10% AGI limitation.
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334 weeks ago
Question Owner
Thank you for answering. What are your thoughts on using it as a deduction on Form 4797, it would be deduction to income. i actually used this once before on an investment loss.
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333 weeks ago