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 adviser.

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

Disclaimer: This content is made available for general information purposes only, and your access or use of the content does not create an attorney-client relationship between you or your organization and Sydecar, Inc. (“Company”). By accessing this content, you agree that the information provided does not constitute legal or other professional advice, including but not limited to: investment advice, tax advice, accounting advice, legal advice or legal services of any kind. This content is not a substitute for obtaining legal advice from a qualified attorney licensed in your jurisdiction and you should not act or refrain from acting based on this content. This content may be changed without notice. It is not guaranteed to be complete, correct or up to date, and it may not reflect the most current legal developments. Prior results do not guarantee a similar outcome. Please see here for our full Terms of Service.

Products

Solutions