Capital loss

I made a capital/cash investment to a firm that does house flipping, I supposed to gain certain % interest every 6 months, they went out of business and ı only was able capture %%80 of the original investment, lost %20 of the capital, how do I claim that as capital loss with my tax return, ı do taxes at @turbotax .

178

Level 15

Apr 12, 2025 10:37:55 AM

we need clarification. Was the money you put in a loan or a capital contribution where you were a part owner of the entity? What type of entity was it - partnership, C-Corporation, S-Corporation? What documentation do you have to support your investment/loan and your inability to recover the balance?

New Member

Apr 12, 2025 3:51:22 PM

Thanks, it was an LLC. I have the contract that shows orginal capital investment with interest terms, ı have the final agreement of payment disclosure that shows the final capital settlement. It was more of a loan as ı was never part of the owner of the entity.

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Capital loss