topic Investment in a startup that dissolved in Investors & landlords

Investment in a startup that dissolved

Confused37 — Sat, 15 Feb 2025 16:31:16 GMT

I invested in a startup that dissolved in 2024. I have the certificate of dissolution, but there is no 1099. Where can I enter this loss? Any investment I try to add in Turbotax asks for a 1099 and I can't get past that.

Re: Investment in a startup that dissolved

MaryK4 — Sat, 15 Feb 2025 17:56:21 GMT

You will enter as capital loss.

Under Investments and Savings, go to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)

Did you have investment income in 2024? YES
Let's import your tax info Enter a different way
OK, let's start with one investment type Other
On the screen that says: Tell us more about this sale:

Your Cost or other basis is your investment amont
Your Proceeds is zero (0)

Re: Investment in a startup that dissolved

Confused37 — Sat, 15 Feb 2025 20:32:27 GMT

This got me really close and I figured it out from there. Thank you so much for your help!

For benefit of others in the same situation: I'm using TurboTax Premier, so options didn't look exactly as described. I clicked on "update" next to "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other". At the bottom of that screen, I clicked on "add investments", then "skip import", then "other".

I may have answered a question wrong in the initial step-by-step interview. Maybe that's why I don't see the prompts exactly as described.

Re: Investment in a startup that dissolved

imrizwan — Sat, 10 Jan 2026 07:14:52 GMT

It sounds like the "Skip Import" and "Other" path was the key to bypassing the 1099-B requirement in the Premier version.

Since you’ve successfully entered the cost basis and the $0 proceeds, the software should now correctly calculate your capital loss.

Before you file, would you like me to help you verify if you should check the "Section 1244" box to potentially increase your deduction limit?

Re: Investment in a startup that dissolved

MrSF — Wed, 11 Mar 2026 02:50:22 GMT

Check if your investment qualifies as Section 1244 stock. If it does, you can deduct the loss against your regular income (up to $50k) rather than just offsetting capital gains. It’s a huge tax win if you qualify.