Federal Tax Treatment of “Ponzi Scheme” Theft Losses
Product Code - TMAU02
Speaker(s): David Early
Agenda
The 2008 investing year is finally over, but it will not soon be forgotten. The S&P 500 Index opened on January 2, 2008, at 1,467.97 and closed on December 31, 2008, at 903.25, posting over a 38% loss in value. The year 2008 also may have handed investors one of the largest frauds committed in the history of the financial markets. These are certainly not small challenges for investors to overcome; however, one unlikely source of reprieve for U.S. taxable investors may lie in the Internal Revenue Code. Investors that suspect they have been involved in a fraudulent investment should be aware of how specific details can impact their personal tax situation.
What is covered:
This webinar, recorded on July 15, 2009, provided participants with a conceptual understanding and practical application of the following:
• Federal tax rules regarding theft losses
• Ability to qualify for theft loss recognition
• Ability to amend for prior years
• What happens when a partnership interest becomes worthless
• Has recent IRS guidance cleared up all the issues?
Education Objectives:
• Identify the key tax issues related to theft losses
• Understand complexities of loss recognition that will need to be looked at closely
• Understand recent IRS guidance and how safe harbor treatment may apply
• Apply various losses to maximize taxpayer benefit Speakers
David Early
Dave Earley
Dave Earley, CPA, specializes in the taxation of hedge funds as part of Deloitte Tax LLP’s Hedge Fund practice. This past March Dave was invited to address the Bureau of National Affairs (BNA) tax Advisory Board to discuss the findings of his recent paper titled Federal tax treatment of “Ponzi Scheme” theft losses, the full article is available at http://www.bna.com/tm/tmm0309_earley.pdf
Prior to joining Deloitte Dave co-founded Clipper Capital, a long short equity and derivative hedge fund. Dave built and maintained the infrastructure which handled all aspects of taxation, financial control, reporting, and planning for the firms domestic, international, and private client funds. Dave built the funds real-time portfolio attribution system, research management system (which was spun out into a venture company), tax lot relief system, and the firms investor relations systems. Prior to co-founding Clipper Dave was part of the tax and legal services team at PricewaterhouseCoopers from 1992 through 2002.