Discussion:Loss on USA Capital investment
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Discussion Forum Index --> Tax Questions --> Loss on USA Capital investment
27 May 2009 | |
| Anybody out there have a client that lost their investment they made with USA Capital?
My client is being solicited by a company named "Hexagon Partners LLC dba 165 Services" in Tampa, FL. This company will prepare my clients return claiming that the loss was a Sec 165(c)(2) theft loss. I guess I need to find out more from my client, but from what I know so far this was not fraud, just an investment gone bad. | |
| 27 May 2009 | |
| How sure are they in regards to that loss of investment?
www.usacapitalcorp.com ? Check out: Sec. 165 - Losses | |
| 27 May 2009 | |
| ยง165(c)(2) would not be theft but a transaction entered into for profit. It could end up in theft but some proof would be required. | |
| 28 May 2009 | |
| Solomon, that is correct. 165 Services will be preparing the returns claiming that the loss was a casualty/theft loss and not a capital loss. I was just wondering if there is anybody here on Tax Almanac that has a client with this same loss and if they have information that shows that this loss was a result of a casualty/theft and not just a investment that has gone worthless. | |
Death&Taxes (talk|edits) said: | 28 May 2009 |
| I have a senior citizens who took a 'bath' in specific bonds ten-twelve years ago and perhaps once a year for many years, she had such correspondence with those offering such schemes, but she never tried since she used the capital loss up in four years with many gains. | |
| 14 December 2009 | |
| Bumping this thread up to see if there is anybody else out there that has a client with a loss from USA Capital.
I believe the facts in this case qualify this loss as a Ponzi scheme and allow taxpayers to use the safe harbor procedures of Rev Proc 2009-20. I searched the internet and came up with an article in the Las Vegas Review Journal - article - stating that the Federal government filed a lawsuit for fraud against Milanowski in 2008. That would make 2008 the loss year, right? | |
| March 17, 2010 | |
| Another bump....
Just had a client in who is being solicited by "Fraud Recovery Services" for this same issue. Altho, they are claiming the 'theft' occurred in 2006, meaning the deadline for amending is fast approaching. Off to research their website. Thanks for any first hand experiences | |
