If you've been victimized by Bernard Madoff's alleged Ponzi scheme, it's too early to know whether you'll get any money back. But there are some steps you should take now. For starters, you'll probably want to hire a securities lawyer. Then, get your records in order. If you haven't already, you or your lawyer should contact the Securities Investor Protection Corp., which recovers funds for investors in instances of brokerage failure. The SIPC can return a maximum of $500,000. To qualify for SIPC money, you must have been a customer of Madoff's brokerage firm, Bernard L. Madoff Investment Securities. The deadline for filing a claim is July 2.
If you were a customer of Madoff's investment arm, where the alleged fraud supposedly occurred, you have no recourse with the SIPC unless your money was held at Madoff's brokerage firm. However, if you invested in a "feeder fund" that directed money to Madoff's money-management arm, you might be able to sue the fund. "Feeder funds were responsible for getting under the hood of the Madoff funds," says Jacob Zamansky, a New York City securities lawyer.
You may be able to save on your taxes by claiming a theft loss on your 2008 return. You must claim a loss in the year it was discovered, so you have to do it now. If it turns out you have suffered a total loss, your claim stands. But if you later get some of your money back, you'll need to amend your claim in a future tax year.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To take the deduction, your loss must be greater than 10% of your adjusted gross income. First, add up your losses and subtract $100, says Thomas Ochsenschlager, vice-president of taxation at the American Institute of Certified Public Accountants. Then, subtract 10% of your adjusted gross income for the year from that figure.
You can write off any excess loss as an itemized deduction on Schedule A. Use Form 4684 for your calculations. File the form with your tax return.
-
Take Charge of Retirement Spending With This Simple StrategyTo make sure you're in control of retirement spending, rather than the other way around, allocate funds to just three purposes: income, protection and legacy.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
Best Banks for High-Net-Worth Clients 2024wealth management These banks welcome customers who keep high balances in deposit and investment accounts, showering them with fee breaks and access to financial-planning services.
-
Stock Market Holidays in 2024 and 2025: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Here, we look at which days the NYSE, Nasdaq and bond markets are off in 2024 and 2025.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? While the stock market does have regular hours, trading doesn't necessarily stop when the major exchanges close.
-
Bogleheads Stay the CourseBears and market volatility don’t scare these die-hard Vanguard investors.
-
The Current I-Bond Rate Until May Is Mildly Attractive. Here's Why.Investing for Income The current I-bond rate is active until November 2024 and presents an attractive value, if not as attractive as in the recent past.
-
What Are I-Bonds? Inflation Made Them Popular. What Now?savings bonds Inflation has made Series I savings bonds, known as I-bonds, enormously popular with risk-averse investors. So how do they work?
-
Kim Kardashian's $1.3 Million Crypto Fine Is a Warning to InvestorsKim Kardashian didn't tell her instagram audience she was paid to promote a crypto token. Now, she'll pay a hefty fine.
-
This New Sustainable ETF’s Pitch? Give Back Profits.investing Newday’s ETF partners with UNICEF and other groups.
