Madoff Clients May Recoup More Losses Through Taxes Than Suits
By Thom Weidlich, Cynthia Cotts and Erik Larson
Jan. 22 (Bloomberg) -- Customers of Bernard Madoff, accused of bilking his clients in a $50 billion Ponzi scheme, may recover more of their investment losses through tax strategies than by suing Madoff or his bankrupt firm.
“If they invested a lot, then they could possibly recover 40 percent of everything” through U.S. and state tax laws, said Micah Bloomfield, a tax specialist at New York law firm Stroock & Stroock & Lavan LLP. ...more...
Experts are saying that the IRS theft deduction is the Madoff victims' best route to recover any significant part of their losses. To understand this recovery strategy you will need both a lawyer and accountant.