How do i determine an adjusted basis?

[Bill-Davenport]

I invested about $40,000 over the last few years for stock in an S-Corp that was developing new video broadcast technologies. The S-Corp ran out of funding during 2020 and I subsequently lost all that I invested-- I knew the risks, so I understand I am just S.O.L. I only got K1's from the few years that I was a stockholder. Is the only information relevant for me what is contained in the K1's and therefore there is no adjusted basis that applies to me?

Regards,

Williamdor

[MinhT1]

The Schedule K-1 reports your share of income (loss) in the S-Corp. These Schedule K-1 have to be reported each year on your tax return.

To determine your cost basis when the S-corp failed in 2020, you need to calculate your stock basis from the numbers reported on your Schedules K-1.

Please read this IRS document which details how you calculate your stock basis to determine your disposal loss.