How to treat employee business investment loss

[DoninGA]

Need more information.

What exactly do you mean employee business investment loss? 

What type of investment was acquired and how was it purchased? 

Did you sell an investment?  Or did the value of the investment decrease but has not been sold?

[rjs]

Your question is not clear. We don't know anything about your business, your employment, or your tax situation, except what you write in your posts. Here are some more questions to try to clarify the situation.

What does the employee have to do with the investment?

Are you the employee, or is someone else the employee?

Who invested in the business - you? an employee of yours?

Who has the loss?

Are you an employee of the business that you invested in?

Did you invest in a business that is owned by someone who is your employee?

Did an employee of a business that you own invest in your business?

[Penmar Farm]

Thank you for getting back to me.  I was an employee who made an investment with cash in an LLC in 2003 including preferred stock in 2003.

The LLC filed for bankruptcy in 2023 .       The equity interests were deemed a total loss.

How do I report this on my tax return? 

Penmar Farm

[Opus 17]

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@Penmar Farm wrote:

Thank you for getting back to me.  I was an employee who made an investment with cash in an LLC in 2003 including preferred stock in 2003.

The LLC filed for bankruptcy in 2023 .       The equity interests were deemed a total loss.

How do I report this on my tax return? 

Penmar Farm

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An LLC can't issue stock, but an S-corporation could.   We still need clarity on what you actually did.  And, are you a member of the LLC (a partner) or an employee.  

[Mike9241]

@Penmar Farm during the years 2003 -2023 were you getting a w-2, K-1 or both? 

and if a k-1 was it a 1065 k-1?