Pig Butchering- how to report in Lacerte

Forum|Forum|4 months ago
February 16, 2026
1 reply
8 views

Taxpayer was scammed via Pig Slaughtering scam in 2025. $1,007,100 sent out via crypto and brought in $189,750 from this scam. We have all the documentation to the local and Fed authorities along with accounting for this. I have the section for Casualty and Thefts (form 4864) filled out but there is no check box or such to allow the loss as a Ponzi type scheme for profit via IRC section 165(c)(2) Memorandum 202511015 dated 3/14/2025.

What am I missing? Thanks in advance!!

Lacerte Tax

BobKamman

Level 15

I know how to fill out tax forms, I don't know much about Lacerte boxes. But it goes on the Form 4684 Section B. Does Lacerte have a different box for that? Or maybe it's some obvious solution like starting with Depreciation.

"In Lacerte, Form 4684 Section B for business or income-producing property (casualty/theft) is primarily generated through Screen 21, Depreciation, by selecting the asset and choosing the "Casualty or Theft (4684)" section. Key fields include describing the event, FMV before/after, and insurance proceeds. The data flows to Form 4684, Section B, which calculates gains/losses (Part I) and summarizes them (Part II)."

DrphibesAuthor

Level 6

Hi Bob,

I think I found it, screen 17, Dispositions, down the screen to Casualty and Theft, Revenue Procedure 2009-20 Safe Harbor. Would be great if someone who has ran across this could confirm. Thanks!

BobKamman

Level 15

But doesn't that apply only to Ponzi/Madoff schemes where the perp has been found and charged? Does it still end up on Section B?

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded