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Level 2
posted Jun 3, 2019 12:02:29 PM

I have invested about 150K in a foreign company which is floated in the year 2012, the company is closed in 2017. How can i deduct this investment

I have promoted and invested in the foreign company since 2012, we have have invested so far about 150,000. In the year 2017 the local promoter started showing no interest in the company in my last visit I have understood that the company no more exists. How can i deduct or claim these investment amount in turbotax

0 5 476
5 Replies
Level 15
Jun 3, 2019 12:02:33 PM

You would show it as sold for $0 in the year it became worthless which sounds like 2017.

To enter your Investments sold

Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Investments
On Stocks, Bonds, Other, click the start or update button


Level 2
Jun 3, 2019 12:02:34 PM

How can i deduct this investment as a loss in my current tax filing

Level 15
Jun 3, 2019 12:02:35 PM

If the property was determined worthless in 2018, then do the above with a sales date in 2018 and sales price of $0.

Level 2
Jun 3, 2019 12:02:36 PM

It is not a property it is a company that is floated with an intent to make money

Level 15
Jun 3, 2019 12:02:38 PM

It all goes in same area, you invested in a company and got nothing in return.  This is the correct place to enter this.  It is actually similar to me buying XYZ stock and then having it go worthless.

In your case it is a capital loss of the investment, and the tax laws treat it the same way.

Now if you were given a K-1 or anything and had losses over the last few years since 2012, those losses would reduce the cost basis of your investment.