{"id":4706,"date":"2009-01-22T17:17:10","date_gmt":"2009-01-22T17:17:10","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2009\/01\/madoff_investors_may_have_a_be"},"modified":"2021-09-20T15:42:42","modified_gmt":"2021-09-20T20:42:42","slug":"madoff-investors-may-have-a-be","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/madoff-investors-may-have-a-be\/","title":{"rendered":"Madoff Investors May Have a Better Chance of Recovering their Investment Losses Through Tax Strategies Rather than Lawsuits"},"content":{"rendered":"

\t\t\t\tInvestors who lost money in Bernard Madoff’s $50 billion Ponzi scam <\/a>may have a better chance of recouping their losses through tax strategies rather than filing lawsuits. Under US tax law, Madoff clients are allowed to take income deductions for losses that occur due to theft. The claim can be filed for the year the loss was discovered, and there is reasonable expectation of recovery. <\/p>\n

Madoff has been charged with securities fraud<\/a>. The 70-year-old investment adviser allegedly confessed to swindling thousands of investors. If convicted, he could face up to 20 years in prison, have his assets forfeited, and be ordered to pay a $5 million fine. <\/p>\n

Investors who were direct customers of Madoff can file their loss claims with the Securities Investor Protection Corporation. If they have determined that they are not likely to recover from an SIPC claim, they can file for a theft-loss deduction. Per this provision, Madoff’s victims who are eligible to file an SIPC claim but don’t would get their deduction reduced by the $500,000 cap on SIPC coverage for securities losses. According to the Internal Revenue Service, the loss from 1 occurrence has to be above $100, with the total loss needing to be over 10% of someone’s adjusted gross income for the year when the deduction is claimed.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Investors who lost money in Bernard Madoff’s $50 billion Ponzi scam may have a better chance of recouping their losses through tax strategies rather than filing lawsuits. Under US tax law, Madoff clients are allowed to take income deductions for losses that occur due to theft. The claim can be filed for the year the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3886],"tags":[],"class_list":["post-4706","post","type-post","status-publish","format-standard","hentry","category-madoff-ponzi-scheme"],"yoast_head":"\nMadoff Investors May Have a Better Chance of Recovering their Investment Losses Through Tax Strategies Rather than Lawsuits — Investor Lawyers Blog — January 22, 2009<\/title>\n<meta name=\"description\" content=\"Investors who lost money in Bernard Madoff's $50 billion Ponzi scam may have a better chance of recouping their losses through tax strategies rather than — January 22, 2009\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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