Theft loss from criminally fraudlent investment

[Mai]

Hello,

Can someone share their experience re: theft loss claimed for criminally fraudlent investment? I read some document, but still not quite sure about the appropriate procesure. Should I file Form 4684 page 2 as Income-producing property and report it under Schedule A, Line 28, other misc deduction, then attach the executed statement referred in Rev. Proc 2009-20. Is that the right process?

Thanks

Mai

[joanmcq]

It depends; what happened? need more info about the investment to determine how to treat it. The Rev Proc only deals with the Madoff scheme, if I remember correctly.

[DavidLewisEA]

Hello,

Can someone share their experience re: theft loss claimed for criminally fraudlent investment? I read some document, but still not quite sure about the appropriate procesure. Should I file Form 4684 page 2 as Income-producing property and report it under Schedule A, Line 28, other misc deduction, then attach the executed statement referred in Rev. Proc 2009-20. Is that the right process?

Thanks

Mai

If you have MAX, go to the election workbook. The required election and worksheet are there, and if you qualify and fill it in correctly, the amount should flow according to instructions in the Rev Proc.