I invested in a business a year ago that has failed. Is this loss deductible on my personal taxes? If so, what is the proper way to set it up within turbo tax? I have read that capital losses are deductible in the event that the asset is sold, in this case the asset went to 0 and there was nothing to sell. The business was a LLc and I put in around 20k.
Thanks!
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If the business was an LLC, you may get a K-1.
You generally can deduct an investment loss. You will enter this as an investment SALE.
You can deduct the investment in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties won't make it worthless unless there is no hope that the company will pull through.
Related Information:
If the business was an LLC, you may get a K-1.
You generally can deduct an investment loss. You will enter this as an investment SALE.
You can deduct the investment in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties won't make it worthless unless there is no hope that the company will pull through.
Related Information:
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