How can I write off the capital loss from a hedge fund investment after the fund liquidated at the end of 2018 and it returned about 88% of my invested capital?

posted

Connect with an expert

4 Replies

How can I write off the capital loss from a hedge fund investment after the fund liquidated at the end of 2018 and it returned about 88% of my invested capital?

Did the sale not show on the brokers 1099-B ?

How can I write off the capital loss from a hedge fund investment after the fund liquidated at the end of 2018 and it returned about 88% of my invested capital?

....and no K-1 either? Most hedge funds are structured as limited partnerships.

How can I write off the capital loss from a hedge fund investment after the fund liquidated at the end of 2018 and it returned about 88% of my invested capital?

The K-1 showed beginning capital balance, reduction in capital (the loss in capital) and reduction for the distribution I received and the ending capital balance of $0.

How can I write off the capital loss from a hedge fund investment after the fund liquidated at the end of 2018 and it returned about 88% of my invested capital?

Turbotax K-1 section did not ask for capital accounts. Is this capital loss considered a passive loss that can be reported elsewhere in Turbotax?

Still have questions?