Screen Ponzi - Revenue Procedure 2009-20 (Ponzi) (1065)

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Computation of Deduction

Description
The application uses the description to identify the casualty or theft on Form 4684. This field is mandatory.
Casualty or theft number
The application automatically assigns a unique casualty or theft number to each unit of the Ponzi screen. This number doesn't transfer to the return; it's for informational purposes only.
Force holding period
Enter
1
for short-term or
2
for long-term. The entry in this field determines the holding period for the deductible theft loss amount reported on Form 4684, Part II, Summary of Gains and Losses. If you leave this field blank, the application defaults to
2
.
Does the taxpayer intend to pursue third-party recovery?
Enter
1
if the taxpayer intends to pursue third-party recovery or
2
if the taxpayer doesn't intend to pursue third-party recovery. The entry in this field determines the percentage of qualified investment that's deductible. If you leave this field blank, the application defaults to
1
.

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