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Posted

TP fell in love on-line.

The scammer had the TP send money to them under the guise of buying gold bars. The TP withdrew his around $70,000 from his 401(k) and added around $70,000 from his savings account and sent it to the scammers.

He invested around $140,000 in this scam.

He has all documents as well as a "fake" Certificate of Purchase.

The question is, can the TP take the $140,000 as a ST capital loss? The scammers were in Canada. He is also a victim of identity theft, so we are working with the IRS to clear this up.

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