Discussion:Ponzi scheme creates NOL

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Revision as of 18:51, 8 October 2009
Blrgcpa (Talk | contribs)
(I understand tha)
← Previous diff		 Revision as of 19:24, 8 October 2009
Seaside CPA (Talk | contribs)
(See Revenue Ruli)
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{{ForumReplyPost|UserID=Blrgcpa|Date=8 October 2009|Text=I understand that for the Madoff the victims were allowed to take a causalty/theft loss. I would think that all types of Ponzi schemes would be treated the same way.}} {{ForumReplyPost|UserID=Blrgcpa|Date=8 October 2009|Text=I understand that for the Madoff the victims were allowed to take a causalty/theft loss. I would think that all types of Ponzi schemes would be treated the same way.}}
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 +{{ForumReplyPost|UserID=Seaside CPA|Date=8 October 2009|Text=See Revenue Ruling 2009-9. It may help clarify things.}}

Revision as of 19:24, 8 October 2009

Discussion Forum Index --> Advanced Tax Questions --> Ponzi scheme creates NOL
Discussion Forum Index --> Tax Questions --> Ponzi scheme creates NOL

Loiscpa (talk|edits) said:

8 October 2009
I have a taxpayer who was caught in two Ponzi schemes to the tune of $55,000. My question has to do with the NOL that should be created by this loss. I have read that individuals are considered a small business for the NOL provision. Lacerte is not calculating an NOL. It calculates that the Nonbusiness deductions are greater than the Nonbusiness income, which is still greater than the loss on form 1040 line 41.

Is this correct? If so then it doesn't seem that the new ruling 2009-20 really helps individuals.

Kevinh5 (talk|edits) said:

8 October 2009
what do YOU get when you calculate the NOL?

Blrgcpa (talk|edits) said:

8 October 2009
I understand that for the Madoff the victims were allowed to take a causalty/theft loss. I would think that all types of Ponzi schemes would be treated the same way.

Seaside CPA (talk|edits) said:

8 October 2009
See Revenue Ruling 2009-9. It may help clarify things.
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