FTX Bankruptcy Filing 11/17/22

By Richard S. Lehman, Esq.

Description:

DECLARATION OF JOHN J. RAY III IN SUPPORT OF CHAPTER 11 PETITIONS AND FIRST DAY PLEADINGS


FTX bankruptcy filing 11/17/22 by Steven Tweedie

Comments

Post a Comment

Popular posts from this blog

The Ponzi Clawback And The Value Of The Mitigation Procedure

By Richard S. Lehman, Esq.
Image
It is important to understand that the clawback falls under the Internal Revenue Code section that deals with financial losses. The importance of this is because the Trump new tax bill left the ability to take deductions and to use the mitigation section in Ponzi schemes because Ponzi schemes were transactions entered into for profits. The Trump tax bill went a long way to eliminate the deductions from thefts that were not thefts that were a result of you trying to make money in an investment scheme or in a business. There is no loss carry backs or deductions from Ponzi schemes or a deduction from a clawback. Under the new Trump Tax bill however if you claim the mitigation section that's when you can go back and use your carry backs and carry forwards. This unique section in the Internal Revenue Code. It's a little bit complicated. And that's because they did not want people who were really not entitled to go back and reopen the statue of limitations. They just didn't w...
Read more

The Clawback Is A Companion To The Ponzi Scheme Deal

By Richard S. Lehman, Esq.
Image
 The Clawback The clawback is a companion to the ponzi scheme deal. It is well thought out and brings more fairness to those who have lost money. To the extent there are individuals who have made money from the scheme those profits are to be returned to the appointment trustee for distribution to the losing party. When this clawback occurs, generally the income clawed back from the taxpayer will be deductible by the taxpayer in the year it is paid. However, often the deduction in the year the clawback is paid may occur at a much lower tax bracket than the tax bracket that was applicable to the income when it was included in income. To provide for tax equity under specific circumstances, the Internal Revenue Code permits a taxpayer who includes an item in gross income in one tax year and pays tax on that item, and who is compelled to return the item in a subsequent year, to calculate the deduction on the amount that is returned in a unique way. This is known as the ‘‘mitigation’’ se...
Read more