Purchasing stock in the company where I am a part owner

[TC57]

For the past 2 years, I have purchased stock from one of the stock holders in a company where I am a minority owner.  The company just sold and I got tagged with an inflated K-1.  Is there any way to deduct the stock purchases I have made ($35,000).  

[ThomasM125]

The stock you purchased is added to your basis in the investment that is then deducted from the proceeds from the liquidation of the business to reduce your capital gain. For instance, if you paid $10,000 for the stock and received $20,000 from the sale of it, your capital gain would be $10,000.

[AmyC]

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your  carryover information, and proof of your basis in your various investments. You must keep tax records  from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses / carryforwards.