Tuesday, June 30, 2009

Little Relief for the Feeder-Fund Investors

Posted by Plus Master at 9:06 AM
 

Investors whose money was placed in Bernard Madoff’s firm through money managers and other feeder funds call themselves "indirects" and complain about not being able to recover their losses.  Jen Meerow, a New York television producer who invested Madoff through a feeder fund, says that the indirects are being treated like second class citizens.  Thousands of these indirect investors do not have access to the programs that offer tax breaks and securities insurance to direct investors.

Last March the Internal Revenue Service (IRS) announced that investors in Bernard Madoff Investment Securities LLC would be able to recover some losses through tax relief, providing investors with the same treatment as small businesses.  The IRS rule allows Madoff investors to declare a theft loss for most of their investment with Madoff and on fictitious earnings they did not withdraw.  The investors are also allowed to reclaim taxes paid on any other earnings over five years.  The break was provided to investors with earnings of less than $15 million, similar to a rule for small businesses.  The IRS rule applied only to qualified investors, or the feeder funds themselves.  Most feeder funds do not qualify since they have gross receipts exceeding $15 million, and their investors.

The article, from The Wall Street Journal, includes a chart with data about the Madoff case from court records the Federal Bureau of Prisons and Securities Investor Protection Corp.

 

 
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1 Responses to "Little Relief for the Feeder-Fund Investors"

PLUS Judith Says: November 02, 2009 (4:11AM) It is just right that the victim receive some debt relief to lighten the burden that they have. I do appreciate the concern of the Internal Revenue Service in showing concern to the Mad off victim. The reclaim taxes could be already a big deal to them. Anyway, did you know that Get Paid To Click, like on advertisements, can get you a penny or two for every website you click on. This isn't something you can get a lot of money out of – you can only click on so many ads or referrals for a fraction of a penny, but some extra cash for the Laundromat. Pay per click websites require you to register, and you'll have to get a minimum amount before you'll get paid out. You may not make much with get paid to click sites, but you CAN with affiliate marketing.
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