My client lost $260,000 of his money and $40,000 of his kid's money in the Madoff Ponzi scheme
As the child was not an eligible investor my client had the child transfer $40k from his account to his (the Dad's) account. Then the Dad added the $40k to his $260,000 and invested it. When we go to take the loss either as a bad investment or a theft can my client take a $260k loss and his child a $40k loss or does the fact the the kid's name was not on the investment preclude this treatment. If we can't do it this way any suggestions on how to take the losses?
As the child was not an eligible investor my client had the child transfer $40k from his account to his (the Dad's) account. Then the Dad added the $40k to his $260,000 and invested it. When we go to take the loss either as a bad investment or a theft can my client take a $260k loss and his child a $40k loss or does the fact the the kid's name was not on the investment preclude this treatment. If we can't do it this way any suggestions on how to take the losses?
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