I invested $40K in a startup in 2012. It was bought last yr & I got $62K, of which $10K is being withheld in an escrow acct for a year. How do I report this? no 1099.

[cyclinguy]

My initial investment was later converted to (at that time unvalued) preferred stock.  I presume I should only report the $52K I actually received this year on my 2016 return, and then will report the remaining $10K when I get it.  Yes?  In each case, how do I report in Turbo Tax Premier

[PatriciaV · Accepted solution]

Yes, this activity would be reported as an Investment Sale.

Since you have not received all the proceeds, and the sale was not reported on Form 1099 or Schedule K-1, you may report the portion you actually received on your current tax return. The balance would be reported when received.

Because the sale closed in 2016, you would write off your entire investment this year. Any proceeds you receive in the future would be Investment Income with no basis.

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