Investors & landlords

what type of entity was the startup?  if a partnership or S-Corp you should have been getting a k-1 each year which likely would report ordinary losses reducing your taxable income and hence basis.   Only with a C-Corp would you be entitled to a capital loss in the year it went bankrupt.   For a partnership or S-Corp it's likely the losses wiped out your basis so there is no capital loss to report.