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Subject:  Re: Final K-1 for a failed company Date:  3/29/2011  10:21 AM
Author:  irasmilo Number:  112870 of 127753

A few years ago I invested in a private company. I received a K-1 in 2009 which showed a partial loss. The company ended up shutting down in 2010 but never issued me a final K-1 showing a total loss. Am I required to have this final K-1 in order to write off this loss? If so, should I ask the other investors to contribute to the accounting costs needed to produce the final K-1? That seems like the only way to produce this final K-1 as the company does not have the funds to do this now.

You can use your personal records to create the appropriate entries for your tax return. However, the actual mechanics of how to do this will be highly dependent on the specifics of the company. You will probably need to find someone who has experience with similar issues to make sure everything is done correctly. (The issue is that part of your investment loss may be ordinary income(loss) and part capital loss.)

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