ThomasM125
Expert Alumni

Business & farm

You need to look at the form 7203, part 1 to see if the stock basis at end of the year is $0. If so, that might limit your loss deduction as it may indicate that you are not at risk in the business. In that case, you would have to examine the entries in part 1 to determine why your basis in stock is $0, as you claim you are at at risk in the venture. 

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