Ponzi scheme losses
Varies
Can You Write Off Ponzi Scheme Losses?
Short answer: Yes: investors can use the IRS safe harbor to deduct 75-95% of a Ponzi loss as an ordinary theft loss in the discovery year.
The loss isn't limited by the $3,000 capital loss cap.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
BW-B23-00534
low risk
Ponzi scheme losses
Varies
Individuals / Personal Taxes
Other Expenses
Personal Tax Deductions
Yes: investors can use the IRS safe harbor to deduct 75-95% of a Ponzi loss as an ordinary theft loss in the discovery year.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: investors can use the IRS safe harbor to deduct 75-95% of a Ponzi loss as an ordinary theft loss in the discovery year. The loss isn't limited by the $3,000 capital loss cap.
Category
- Personal Tax Deductions
personal deduction
search demand 2026 b23
losses
investments