Investment Fraud

Forum|Forum|3 years ago
April 15, 2023
1 reply
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This is an international online investment. After I tried to cash out my invested money and profits, I was told that I will be paid if I pay profit tax first. Otherwise, my account will become bad and frozen. After I paid Request #1, Request #2 came up. And this process had been going on and on ten times without any money paid to me. How can I claim a total loss on this investment, especially when million dollars came from the IRA account.

RobertB4444

When an investment becomes worthless it is treated as a sale. You will enter this as though you received a 1099-B showing that you purchased the investment for what you paid for it and then show the sale price as zero dollars and the sale date as the date that you realized the investment had become worthless.

If you have been scammed out of a million dollars expect the IRS to ask questions. You will need to document everything. You will have to have a paper trail showing the initial investment as well as any subsequent payments. Print the emails, print the proof of payments, print it all. You should also have police reports showing that you have reported this theft to the authorities (if you have not done this yet then do it before you enter this on your tax return). Prepare yourself for the questions because a million dollar loss raises questions.

And then you don't get the deduction for all of it. This is a capital loss deduction. It can be taken against any capital gains that you receive but otherwise it is only deducted at $3000 a year each year until it is used up.

@JJ0415

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