ES Journal - 2014

Handle123 said:
Been shorting ES 2083.25/.00 and buying Jan 2095 Call options for long term trade
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Selling bit more at 87.50/.25, volume declining on one minute chart. Am using 16pt protective stops, first target is 40 pts.

I think it best to always take out of your account and put it elsewhere, brokerages and Madoffs everywhere.

Question, those who paid taxes on what they thought were gains with Madoff, were they able to get money back from IRS?
 
Can you imagine paying 5-15 years taxes on money you never made and IRS is saying nothing except pay me some more. Or IRS is saying you owe us so much more in audits and yet not only do you lose all that money with Madoff but also can't get the money back from IRS. I think they have so many years to re-adjust past tax records?
 
Handle123 said:
Question, those who paid taxes on what they thought were gains with Madoff, were they able to get money back from IRS?
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Due to the Madoff Ponzi scheme,the laws were changed so that victims would be able to deduct the loss as a theft loss rather than a capital loss. Capital loss is limited to $ 3,000/ yr deduction against ordinary income with excess carried over to future years whereas the theft loss could be all deducted in the year of loss. (This is a general answer. There are further limitations on theft losses in regards to it being an itemized deduction)

So, their loss would be the amount they invested plus any 'dividends/gains' they had previously reported as income less any distributions they had received.
 
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