I invested in a friend's start-up via a convertible note. The business ceased operations. How do I write off this investment? I recovered a portion of the original principle

I invested in a friend's start-up via a convertible note. The business has ceased operations and I am curious how to write off this investment. I recovered a portion of the original principal investment from a few years ago. The convert did not pay any cash interest over its life outstanding.

The below seems similar but I want to make sure there is no difference since I had a 28% recovery.

https://ttlc.intuit.com/questions/3823311-i-invested-in-a-friend-s-start-up-via-a-convertible-note-the-business-has-ceased-operations-and-i-am-curious-how-to-write-off-this-investment

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1 Best answer

New Member

Jun 1, 2019 9:59:02 AM

The instructions are fine, you just need to reduce your cost basis in the investment by the recovered amount.

New Member

Jun 1, 2019 9:59:02 AM

The instructions are fine, you just need to reduce your cost basis in the investment by the recovered amount.

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I invested in a friend's start-up via a convertible note. The business ceased operations. How do I write off this investment? I recovered a portion of the original principle