Discussion:Investment loss or theft
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Revision as of 19:18, 2 June 2008 Mshelden (Talk | contribs) (If you can call) Next diff → |
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| {{ForumReplyPost|UserID=Kevinh5|Date=2 June 2008|Text=how is there a loss if she is still collecting from the lawsuit?}} | {{ForumReplyPost|UserID=Kevinh5|Date=2 June 2008|Text=how is there a loss if she is still collecting from the lawsuit?}} | ||
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| + | {{ForumReplyPost|UserID=Mshelden|Date=June 2, 2008|Text=If you can call it collecting! On $30,000 interest on the judgement of 173,000, she has received $4864. The interest is only climbing, and serious payment is not forthcoming. The owner has no assets and no employment, and is going through bankrupty, albeit, this judgement is not dischargeable. Does this compare to a burglary-type theft, where she is not going to receive any recompense?}} | ||
Revision as of 19:18, 2 June 2008
Discussion Forum Index --> Advanced Tax Questions --> Investment loss or theft
Discussion Forum Index --> Tax Questions --> Investment loss or theft
| June 2, 2008 | |
| I hope this is not too long of a question, but I really would like your inputs:
1) In 2002, Client inherited $100,000 from fathers estate. 2) Nov 02, She wrote check for $100,000 to Investment Club Partnership(alias). Got receipt. 3) In 2003, Club had a loss, K-1 was issued showing $17,845 LT capital loss, $101 in interest and $180 in deductions. 4) 2003 Tax Return used $3000 of the loss. 5) 2004 TR used $3000 of the carryover, but no K-1 issued otherwise. 6) 2005 and 2006 no carryover loss used and no K-1 issued. 7) In 2005, she filed lawsuit against owner of Club. 8) In 2006 won lawsuit. 9) Owner convicted of selling unregistered securities, self-dealing, fraud and deception. 10) He was ordered to pay back principal ($100,000) and costs totaling $170,714 + interest. 11) As of 3/11/08, $4864 paid and balance has increased to $198,882. Now: Do I treat this as a investment loss, and in what year? Or do I treat this as a theft loss, and in what year? I can amend prior years if needed. I don't want to lose any benefit of the loss, so I don't think I want to carry it back past 2004, can I elect this? Also, what basis do I use? Should I use $100,000 or, say 94,000? And going forward, does she have to claim any repayments as income? She is not a high income person, AGI about $30,000 and shes over 65. Thanks you for your advice. I often read the discussions, but have not posted for years. | |
| 2 June 2008 | |
| how is there a loss if she is still collecting from the lawsuit? | |
| June 2, 2008 | |
| If you can call it collecting! On $30,000 interest on the judgement of 173,000, she has received $4864. The interest is only climbing, and serious payment is not forthcoming. The owner has no assets and no employment, and is going through bankrupty, albeit, this judgement is not dischargeable. Does this compare to a burglary-type theft, where she is not going to receive any recompense? | |
