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Can I write off an SPV investment if it goes to zero?

Yes, the loss from an investment that has gone to zero will be reflected in your tax package for the year, and you can write it off for tax purposes.


In most cases, this will be a capital loss. The deductibility of capital losses depends on your unique tax situation, so we recommend you consult with your tax advisor.


Since VC funds pass through tax liability to their investors , each investor must report gains/losses on their annual tax return.