We invested in a business that failed, how do I write this off

[DDollar]

you can report this Loss on Dissolution on your personal tax return. You will enter this under the Investment Income area of Wages & Income.  In TurboTax Online Premier

1. Choose Federal Taxes >> Wages and Income
   
2. Stocks, Mutual Funds, Bonds, Other >> Start or Edit/Add.
3. Type of Investment: Everything Else
4. Enter a description, Net Proceeds = $0 and date of sale = dissolution date.
5. Acquired: Other method
6. Cost Basis: your adjusted cost basis at dissolution
   
7. Date of Acquisition: date you made your investment

TurboTax will calculate the loss on this investment and determine if it was short- or long-term. If you have other capital gains, the loss will offset some or all of the gains. Otherwise, up to $3,000 of the capital loss will go to line 13 of Form 1040 and offset other income. The remaining loss over $3,000 will be carried forward each year until used up (applied to capital gains and/or ordinary income).