I think we can get the answers (and we need to get this done!) about how to handle your investment losses from a Tax Attorney for the whole group, so each of you does not have to pay for this. We need advice on the Esmeralda investment and the IPX 1-2-3 PPM's and how to do this for personal taxes, SD IRAs, and trusts. So we need someone with investments in each of these scenarios to participate, or provide documents at least.
It will cost around $400 to do this, so I can set up a "Go Fund Me" type page and everyone who is willing can contribute. The only problem is making a donation does have fees (from PayPal or credit card companies) even though Go Fund Me charges nothing.
Would you prefer to just mail me a check? Let me know in the comments.... I will provide an accounting of the money and if we have any left over, we can donate it to one of the food banks or one of the Thanksgiving dinners for the needy projects. Thoughts?
My wife has an IRA account that she invested in Esmeralda. Do you have the name of the tax lawyer you are using so i can get a hold of them. Also how do i get a copy of the commissions ruling and a list of the names on ruling to make sure her name is listed as LLC name. Any help you can give would be appreciated.
Jack
Is this idea of getting a tax lawyer for the group still in play? am very interested in this and helping with the costs as well.
The reporting of the fair market value to the IRS for all SD IRAs is not done through your tax filings for the account, but rather by the custodian of the account. What is reported to the IRS on Form 990T is irrelevant of any investment gains or losses. Reducing the value of your SD IRA due to the worthlessness of an investment is done by your custodian. For most of us, that is IRA Services.
As I said in my reply to Debbie, this is the situation we had this past year. In order to eliminate the value of some worthless (in this case, it was actually HUGE losses) on 2 DOTs, we had to document the loss for IRA Services. It was NOT a part of our tax filings at all.
What if part of the money came from our SD IRAxand part from money we made on a non-IPX house we flipped? Also, isn't a loss a loss regardless from where it came from? We already paid the taxes on the $200K we gave for the Esmeralda investment. Thx, Sue Hewitt
My CPA just replied to my email about the Tax Attorney situation:
" The IRS generally states that there must be a documented event that occurs to support the position that the investment is “worthless” before you are able to claim a deduction for writing off the basis of the investment. "
So perhaps the word "generally" leaves the door open a bit?? I guess it's worth a shot!
How much do you want sent in a check to you, Ann, and need the address. Thx, Sue Hewitt