Corporation investment losses
Where would I report investment losses on an 1120? The investment is still held by corp, but lost over $50,000.
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dlcpa
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12/11/08 10:30am PST
Viewed by asker 12/11/08 10:51am PST
Viewed by asker 12/11/08 10:51am PST
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Amy-in-PA
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12/11/08 12:28pm PST
This may be a dumb question, but if the investment is still held, how could there be a loss by IRS standards? Don't you have to sell, to show a loss?
Back up before it's too late. For a professional answer, call Tech Support at 1-800-933-9999 (Lacerte)(other numbers ProSeries, QB, or TurboTax). I am a volunteer, not compensated or supported by Intuit.
CWM
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12/12/08 3:43pm PST
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The IRS requires that the taxpayer liquidate the investment (or have evidence that the underlying security is now worthless) before the taxpayer can recognize the loss on the tax return. When there is a liquidation, the information should be entered on schedule D (the dispositions input screen). Also remember that the taxpayer cannot reaquired the investment within 30 days of the sale or they again could not recognize the loss until they finally dispose of the investment.
