Thought about taxes... I invest in 20 companies with $100/$250....15 go to zero. I hear I can't write it off on my taxes! Is this possible? Kurt

Devin Thorpe
12/11/2021,
Devin Thorpe  replied:

One of the challenges with writing off investments in early-stage companies is they often fail to die. Until the company winds up, the shares aren't technically worthless. One way to trigger the loss is to sell the shares but nearly worthless shares in private companies are nearly impossible to sell. Investing in private companies requires patience.

0   
Brian Belley
12/11/2021,
Brian Belley  replied:

I'm not a tax advisor, but you might want to look into Section 1244 losses and if you might qualify.

https://crowdwise.org/taxes/three-ways-the-us-gives-tax-relief-for-investing-in-startups/

At the very least, your losses should qualify as capital losses, similar to if you bought a stock and it went to zero. 

1   
Devin Thorpe
12/11/2021,
Devin Thorpe  replied:

One of the challenges with writing off investments in early-stage companies is they often fail to die. Until the company winds up, the shares aren't technically worthless. One way to trigger the loss is to sell the shares but nearly worthless shares in private companies are nearly impossible to sell. Investing in private companies requires patience.

0