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Old 04-08-2015, 12:04 AM
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Reporting loss due to Ponzi scheme

In 2009 I invested into a stock based on press releases, SEC filed earnings, television promos regarding a company that turned out to be a scam. I lost $11,000 after I sold the stock.

In 2010, the U.S. filed a lawsuit against the company and it's officers for fraud. In 2013, they concluded the matter with a judgement against them. I found this out in 2014 the judgement was obtained.

In 2009, I reported the loss on my taxes. I ended up with an overall capital loss of $9,000 (I deducted 3,000 from my income that year).

I am reading Rev. Proc. 2009-20 which says I can deduct the loss from my income without having to do the theft loss.

My question is, I reported the loss in 2009, do I need to file an amended return to remove the loss? Or do I keep the loss and file the form 4684 section B? Do I do it for 2009 or can I do it for 2014 (the year it was discovered)? Everything else in my taxes is figured out, but I just found out about this rule (in 2014 I owe $10,000 in taxes as I sold stock, etc.). Not sure how to proceed

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