Madoff situation

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  • Kram BergGold
    Senior Member
    • Jun 2006
    • 2112

    #1

    Madoff situation

    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?
  • BOB W
    Senior Member
    • Jun 2005
    • 4061

    #2
    I would think that it is all the Dad's loss. The child's name was on nothing that would prove he had a loss for IRS purposes.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

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