How To Deduct Ponzi Scheme Losses On Your Taxes

Did you know that IRS revenue ruling 2009-20 can help you claim losses from Ponzi schemes? Here’s what to do:

    Step 1: Trust your life savings to a man who seemed nice at the Beth-El potluck supper.

    Step 2: Find out that the nice man is in fact a demon who took all of your money and either used it to put gold accents on his boat or throw it in the toilet.

    Step 3a: Prepare your taxes. No income this year? How about last year? 2007? 2006? Great! You get that back too!

    Step 3b: No income in the past but, now that you’re broke you need to get a job? Don’t worry! If you lost enough money, you can carry the loss forward and live tax free for the next 20 years.

    Step 3c: Read this article if any of this is unclear.

    Step 4: Keep your eye out for a new financial guru at the next potluck.

Tax Breaks for Ponzi-Scheme Victims [SmartMoney]
(Photo: fimoculous)