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posted Jun 4, 2019 4:29:23 PM

I invested in a start-up company that failed, losing my entire investment. I deducted that loss in 2012. How long to I need to keep the record of that failed investment?

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1 Best answer
Level 6
Jun 4, 2019 4:29:24 PM

Personally, I'd frame it and put it on the wall as a reminder not to do that again. (And yes, I have been there, done that.) But now that it's seven years later, you may feel better burning those records.

IRS says:

Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records



1 Replies
Level 6
Jun 4, 2019 4:29:24 PM

Personally, I'd frame it and put it on the wall as a reminder not to do that again. (And yes, I have been there, done that.) But now that it's seven years later, you may feel better burning those records.

IRS says:

Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records