Replies to post #320359 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[Virtual Drew]

Issue 1. Theft loss.
In the present situation, unlike the situation in Rev. Rul. 77-17, B specifically intended to, and did, deprive A of money by criminal acts. B’s actions constituted a theft from A, as theft is defined for § 165 purposes. Accordingly, A’s loss is a theft loss, not a capital loss.

Issue 2. Deduction limitations.
Accordingly, A’s theft loss is an itemized deduction that is not subject to the limits on itemized deductions in §§ 67 and 68.

Both excerpts taken from: http://www.irs.gov/irb/2009-14_IRB/ar07.html#d0e309

DECODER
A = YOU!
B = Moskowitz, Metter, et al

Again, if the SEC/DOJ successfully convict Moskowtiz and Metter, SPNG shareholders may have a perfect opportunity to write it all off!
Let's hope for the sake of the remaining SPNG shareholders, the government prevails!

[Fire Lane]

yes its per year with the ability to carry the loss forward.