The Ponzi Clawback And The Value Of The Mitigation Procedure
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...