Bigger, Faster Tax Benefits

If your investment loss qualifies as a theft loss under Section 165, it may be possible for you to deduct the full amount of your loss immediately against ordinary earned income, all in one year. If your loss exceeds your taxable income in that year you are allowed to get a refund for previous taxes paid.

A theft loss deduction offers many advantages:

• Deduct Your Full Loss Amount Now. There is no limit to a theft loss deduction, unlike the $3000 per year capital loss limit. In other words, it could take you 34 years to fully deduct a $100,000 loss as a capital loss.
• Lower This Year's Taxes. You may be able to immediately reduce or even eliminate tax payments.
• Get A Tax Refund. Depending on your circumstances, you may qualify for a tax refund.