Lost $$ in bank failure - writeoff?

[DaveV]

Hi people, new here - I had some uninsured deposits in NetBank, which the govt shut down 3 weeks ago, and now I am out $15k, and basically in line if they distribute any assets - my question is, can I write this off on my taxes next spring? Any advice, etc appreciated!
- link deleted -

[Bees Knees]

TTB, page 8-6 says to be deductible, a bad debt must be totally worthless. The website you linked says ING Direct is taking over insured accounts. You said your account was uninsured. How is that possible? I though all banks were required to insure deposits through the FDIC?

Anyway, you need to find out if there is any chance that you might recover some of your deposit before you can deduct the bad debt.

[DaveV]

FDIC insures up to 100k - I thought EACH account was, they add up ALL your accounts, my mistake - I had a CD as well as a money market and checking that added up to over 100k(my life savings) - I learned the hard way, THAT will never happen again - at this point we are the depositers who are uninsured may receive "dividends" when the mess is sorted out and their assets are liquidated. What I need to find out is the effect this will have on my tax returns next year.
PS I don't know why you deleted my link, that was the statement/background info from FDIC regarding the situation, very relevent to this post - if you want to see it, go to FDICdotGOV and scroll down to "Failed Bank Information - NetBank, Alpharetta, Georgia"

[Bees Knees]

at this point we are the depositers who are uninsured may receive "dividends" when the mess is sorted out and their assets are liquidated. What I need to find out is the effect this will have on my tax returns next year.

It will have no effect on your tax return next year, until you find out exactly what you lost. If you are going to receive "dividends" when the mess is sorted out, that means your investment is not totally worthless, which is a requirement to deduct the loss. If it isn't totally worthless, you can't deduct it, until you cash out whatever "dividends" you are entitled to.

PS I don't know why you deleted my link, that was the statement/background info from FDIC regarding the situation, very relevent to this post - if you want to see it, go to FDICdotGOV and scroll down to "Failed Bank Information - NetBank, Alpharetta, Georgia"

Rules of this message board do not allow new registered members to post links to other websites. Once you have established yourself as a contributing member, then they will allow you to post links.

[Joe Btfsplk]

Uninsured banks

Not all banks are insured by the FDIC. In San Antonio there was (maybe still is) an unincorporated bank which was not insured. I believe it was called "D & A Oppenheimer." I left San Antonio in 1969, so things may have changed since then.