In 2011-13 I invested $30K in a start up here in Silicon Valley. It was a C Corporation. The venture didn't work out and the company folded in 2015. Am I correct I can only take a $3,000 loss per year on this ? There was never any distributions or income generated by the company. The only asset was the code written for an app that is worthless for anything else.
If you have capital gains in the year, you can use these losses to offset up to the full amount of gains. So if you had $10,000 in gains, you could take offsetting capital losses of $10,000; $30,000 of gains, then offsetting losses of $30,000, etc etc.
But you can only take the losses against ordinary income (not capital gain) up to $3,000 per year, with the remaining $27,000 to be carried over to future years.
cap loss vs ordinary loss wrote:
If you have capital gains in the year, you can use these losses to offset up to the full amount of gains. So if you had $10,000 in gains, you could take offsetting capital losses of $10,000; $30,000 of gains, then offsetting losses of $30,000, etc etc.
But you can only take the losses against ordinary income (not capital gain) up to $3,000 per year, with the remaining $27,000 to be carried over to future years.
I believe he can sell something witch has a capital gain of $30k and write then entire loss off. Then reinvest the $30k. This would reset his tax basis on the $30k of gains and avoid paying tax on it in the future.
*which*
My first question would be since you say it was C corp and you invested, were you issued any stock, which you should have been? Or, what did you get for your investment?
Prepare to be audited. You are entitled to a $30,000 tax deduction, but it is likely the IRS will ask for some proof.
Look up the rules related to IRC section 1244 to see if you qualify. The rules are specific but if you meet the tests, you'd be allowed a deduction for the full amount
Sigh, rich people problems.
Female coach having affair with male runner. Should I report it?
Post about women banditing Brooklyn half marathon going viral on X
If Daniel's and Pfitz are outdated..then where do I look for modern training plans?
Colin Sahlman runs 1:45 and Nico Young runs 1:47 in the 800m tonight at the Desert Heat Classic