Bad Investment

[Parent of Holy Terrors]

Facts People invested $65,000.00 into a business which they set up as a corp but never did the s election.

The business started and ended in 2004.

How can they get this loss on the personal tax form?

Should they leave it as a C corp and could they take it on the D but limited to 3,000 per year?

Can they take a late s election and try to get it back on the 1040 somehow.

I hope an experienced person can assist on this matter.

Thanks.

[Unregistered]

bad investment

Check out the requirements for section 1244 stock.

the instructions for form 4797 will put you on the right track, but be SURE
that the stock qualifies, and that any "loans' they made to the corporation
are documented.

ChEAr$,
Harlan Lunsford, EA n LA

[Unregistered]

In fact

I'll bet there's some information on section 1244 stock in this new publication
I just found this year I'ts called THE TAXBOOK (tm) and it's real good.
And easier to read than IRS stuff.

(grin)

ChEAr$,
Harlan Lunsfod, EA n LA

[Bird Legs]

1244 Stock

also, you can go to Google and type in, Sect. 1244 Stock requirements.