Crowdfunding investment loss

[amyonghwee]

I invested in some portfolio (crowdfunding) in SeedInvest, which has changed to StartEngine, in 2017.

In 2022, one of them, FenSens went out of business. 

This year 2025, Sapient X just filed a dissolution and likely to be out of business.

Can I report these 2 losses in my 2025 tax returns?

[Bsch4477 · Accepted solution]

Investment losses must be claimed in the year that they occurred. 

[amyonghwee]

@Bsch4477 

Can you pls advise on the steps in Turbotax Home and Business to report these investment losses ? Thanks.

[Bsch4477]

Personal>Income>I’ll choose >Investment Income >Stocks>Did you have investment income-Yes>skip the import on the next window and follow prompts to enter asset, dates of purchase and sale and cost and proceeds (bankrupt). 

[amyonghwee]

Thanks @Bsch4477 !

I updated TT 2022 with the 2022 FenSens loss ($500), who went out of business.  As I have a significant capital loss and so 2022 loss is limited to $3000.

Looks like I have to update TT 2023 with this increased in carryover loss. Again, the capital loss is significant and 2023 loss is limited to $3000.

Coming to 2024, there is capital gain which exceeds these carryover. And there is where this $500 will reduce my tax due.

Just to claim this $500 loss, do I really have to file an amended TT return for 2022 , 2023 and 2024 ???

[Bsch4477 · Accepted solution]

You are not compelled to report a loss. 

[amyonghwee]

But if I want a small tax reduction, this means I have to file amended 2022, 2023 and 2024 tax returns? Is there anyway I can just report this loss on 2024 tax return?

[rjs · Accepted solution]

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@amyonghwee wrote:

Is there anyway I can just report this loss on 2024 tax return?

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No, there is no way to just report the loss on your 2024 tax return. As Bsch4477 has said, since the loss occurred in 2022 you have to report it on your 2022 tax return, then carry it forward. You cannot report the initial loss on your 2024 tax return.

If you only amend 2024 and show a capital loss carryover that is greater than the carryover from your 2023 tax return the IRS will just disallow the excess loss carryover.

Do not mail more than one amended return in the same envelope. Mail each amended return in a separate envelope.