What paperwork do I need from the Company that I Invested money in ?

[SweetieJean]

How exactly did you invest?  Buy stock? Make a loan?

[filieu]

I just sent the money to be Invested in the Company

[filieu]

Yes sorry Buy Stock

[SweetieJean]

We need more info. How much did you invest? Was this done through, say, a broker? Or, did you invest in a friend's start up?  Just sending money without any signed paperwork is not a good idea. Is the company paying you interest, dividends?

[filieu]

It was Invested in a freind's Startup Company.  They will pay Dividends.
Is there some Form they need to send me for my Tax return?

[Critter]

Well now it depends on the company's structure ... if they are a C-corp you will get a 1099-div only if they paid dividends.

[filieu]

Is there a K2 Form for a C-coro

[Critter]

No ... a K-1 comes from an S-corp or a Partnership.

[filieu]

Let me ask the question differently.
Is there a Tax break if you Invest  $  in a company ?

[Critter]

No ... no more than you buying stock on the open market ... it is just an investment until something happens ... like they pay interest, dividends or you sell it.

[SweetieJean]

I hope you looked into this carefully before giving your friend that money.

[SweetieJean · Accepted solution]

No, there is no tax break just for investing in a company.