PFG Investors Can Use IRS Rev. Ruling 2009-09 and That's Great News!

By Robert A. Green, CPA

Good news, CCC was successful in winning IRS Rev. Ruling 2009-09 tax relief for PFG Best customers. Read the important update on the CCC site. As CCC points out, “Please note: it is not required that PFGBest victims use this procedure. It may not provide the best solution for your particular tax situation. Claimants in the PFGBest case are urged to consult their tax professionals as soon as practicable to determine if it is appropriate and wise to seek relief under the safe harbor deduction for theft losses.”

GreenTraderTax is working on a new blog with ideas to consider in figuring out the best way to take your PFG tax losses.

Some business traders may be better off with Section 165 business ordinary loss treatment when the final loss is sustained in 2013 or 2014, rather than take a juiced up Rev. Proc. 2009-20 theft loss deduction in 2012 at lower Bush-era tax rates, and then have to report more recovery income in 2013 or 2014 at materially higher Obama-era tax rates, including the ObamaCare 3.8% Medicare surtax on unearned income. For upper-income taxpayers, it could be a difference in tax rates of 10% to 20% or more. Recent reports indicate the trustee may recover an additional 30% of customer funds later in 2013 or 2014.

Stay tuned for this full blog coming soon.