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Hi Fools,

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.


Have you been in communication with the company's management about a final tax return?

Of course you could file your return and claim the loss for your remaining basis. It would be nice to have some documentation for that, of course.

What kind of company was it? A partnership, LLC, S-Corp?
Were articles of dissolution filed? Can you get a copy?
If you had that, it's better than nothing.

What was your role in the company? Were you an officer, managing member, whatever? If so, you might have a personal responsibility to file the final return for the company.

And if it was an S-Corp, and the shares were issued directly to you, you might qualify to take the loss on your stock as a 1244 (ordinary)loss, instead of a capital loss.

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