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Ponzi Safe Harbor

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    Ponzi Safe Harbor

    I learned a little more about the safe harbor at a NATP session and my client I wrote about last year would qualify for this.

    He invested $100k and lost $68k in the final analysis.

    I have the rev proc 2009-20 and have filled out the appendix A to attach to the return.

    Do I understand this correctly, that even though small amounts are trickling in, I can go ahead with the safe harbor claiming "75% of line 5 for investors with potential third party recovery" as stated on line 6?

    That is how I understood it in class.
    "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey
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