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September 23, 2024
Question

How to treat employee business investment loss

  • September 23, 2024
  • 3 replies
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    3 replies

    DoninGA
    Employee
    September 23, 2024

    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?

    September 26, 2024

    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

     

    Employee
    September 26, 2024

    @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

     


    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.  

    rjs
    Employee
    September 23, 2024

    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?

    September 27, 2024

    @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?