A lot of them were given good "earnings", on which they should have paid taxes.

And a lot of people took out there principle.

So for them it was a functioning investment. No harm, no foul.

Then there were people who made good "earnings", but lost the principle. Is the principle a loss regarding taxes? Why wouldn't it be?

I would think the loss could be written off against the "earnings", don't know if they have anything coming after that.

I'm going to have coffee with a friend whose an accountant in a couple of hours, and I'll ask him. He may not show up, this far into tax season, but if he does I'll nail him.

Arf