Is the Madoff Scam becoming a Taxpayer's Scam?
puremagic
Posts: 1,907
Help me to understand because if I had lost $1 to $10 million dollars, I don't think I would be acting like business as usual which seems to be the case with Hollywood, the universities, and the Florida scene.
Example,if I give you $10,000 to invest within a year, you take $3,000 as a fee, that leaves $7,000 which was not invested, didn't earn any gain or loss. So how is that a person can claim a lost of say $150,000 based on fraudulent billing statements?
I asked this because a couple of people don't seem to be worried about their lost because they will recoup the lost via the IRS through their capital gain and lost; in their charitable deductions.
It just seems as though the timing of this Madoff scam seems to be protecting a large segment of wealthy investors who would have otherwise had significant personal/business losses during this continuing down swing of Wall Street. There has to be some legitimate, financial, banking paper trail that the IRS and SEC should require from these investors who are claiming they were victims and not just their name on a financially worthless billing statement found in Madoff's office.
Example,if I give you $10,000 to invest within a year, you take $3,000 as a fee, that leaves $7,000 which was not invested, didn't earn any gain or loss. So how is that a person can claim a lost of say $150,000 based on fraudulent billing statements?
I asked this because a couple of people don't seem to be worried about their lost because they will recoup the lost via the IRS through their capital gain and lost; in their charitable deductions.
It just seems as though the timing of this Madoff scam seems to be protecting a large segment of wealthy investors who would have otherwise had significant personal/business losses during this continuing down swing of Wall Street. There has to be some legitimate, financial, banking paper trail that the IRS and SEC should require from these investors who are claiming they were victims and not just their name on a financially worthless billing statement found in Madoff's office.
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Also, with investment losses, you can only deduct $3,000 a year so it's not like they will a huge tax deduction. What they do get is a credit to taxes for capital gains, so if next year they have huge gains and recover their losses from this year, then they would have to pay little taxes next year. I know this because I was hoping I could myself recover some of my investment losses.
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Here in Palm Beach Florida my boss lost about 30mil, his brother 35mil and other family members even more. They seem to be only slightly pissed that they were scammed by a Jewish thief in NY and a member of their club. They have lawyers lined up to right off these losses to taxes in the upcoming years. In other words they may not have to pay any taxes due these losses and long they can prove what they originally invested. Many weren't so lucky they had everything invested with Madoff and some were forced to sell 2nd and 3rd homes to have some money in hand.
Wealthy people to me ALWAYS seem to have a way out even in these tough times.
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