gkwin@inuxd.UUCP (G Wade) (02/01/84)
I would like to know if anyone knows where to file an investment loss using the 1040 federal tax form. For alI know it might not even be possible. I'm not sure what the investment was. From what I can tell it was either an investment in Gems, the goverment oil lease program or something like that. The company went out of business and the guy lost a small investment. He asked if I could find a way to write the loss of in taxes. This is all the information I have to go on. If anyone can give some possible ways to write off the loss I would appreciate the information. Thanks in advance. G. K. Wade
sdl@rayssd.UUCP (02/05/84)
Try Schedule D (Capital Gains/Losses), of course. That's the usual way to report investment losses. If the company went out of business less than a year after he made his investment in it, it's a short term loss, fully deductible at earned income rates. More than a year, it's a long-term capital loss, for which only 40% of the loss is deductible. If the investor incurred any investment expenses in making the investment (like he paid a broker or lawyer), add this to the amount of the origiinal investment to increase the size of the total loss reported.
neal@denelcor.UUCP (Neal Weidenhofer) (02/10/84)
************************************************************************** > I would like to know if anyone knows where to file an >investment loss using the 1040 federal tax form. For alI know it >might not even be possible. >I'm not sure what the investment was. From what I can tell it was either >an investment in Gems, the goverment oil lease program or something like >that. The company went >out of business and the guy lost a small investment. He asked if I could find >a way to write the loss of in taxes. This is all the information I have to >go on. If anyone can give some possible ways to write off the loss I would >appreciate the information. Thanks in advance. Most investments (and in particular this one from the sounds of it) involve buying something with the intention of selling it later for a profit. The profit or loss in these cases is called capital gain or loss and is reported on Schedule "D". Regards, Neal Weidenhofer Denelcor, Inc. <hao|csu-cs|brl-bmd>!denelcor!neal