So, let's say you actually did make money with REFCOFX, or least that's what your account balances show. What do you do about money that you can't get your hands on, but you supposedly made profits on. I assume that the IRS get their cut no matter what? Does anyone know any better. I owe several thousand dollars in taxes from my paper profits with REFCOFX. BTW, if you have a lawyer for a friend, tell him to to a honest job, and stop stealing peoples money for a living.
i think you will owe taxes on it this year but if you never get it back you can write the whole amount off in the year it becomes worthless.
Yes, I have the same situation with my REFCOFX account. You need to report the income and gain for 2005 on your return. If we ultimately do not get our money back, we can claim a capital loss in the year the money is lost.