JVL Tax Law

Business and Transactional Tax Practice

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  • About
  • Services
    • Tax Diagnosis
    • Outline of Areas of Experience
    • Tax Services for Private Companies
    • Tax Services for Individuals
    • Financial Advisors, Attorneys and Accountants
    • Implementation
    • IRS and California State Tax Audits
  • M&A
    • Entity Selection
    • Equity Compensation Plan
    • Earn-outs
    • Structuring
    • Bankruptcy and Debt Workouts
    • Joint Ventures
  • Industry
    Experience
    • Financial Services: Private Equity, Hedge Funds, Cryptocurrency
    • Software and Tech
    • Lawyers and Law Firms
  • International
    • Inbound Investment For Foreign Investors
    • Outbound: PFICs and CFCs
    • Individuals Moving to and From the United States
    • Tax Compliance
  • Tax
    Losses
    • Bad Business Debt
    • Theft Losses, Casualty Losses
    • Restitution and Returns of Compensation
    • Partnership Losses
  • News
  • Contact
Call: 650.999.0573

Tax Losses

“A person who has never made a mistake never tried anything new.”

Albert Einstein

Founding and providing financing for startups and private companies can be risky.  If the venture fails, it may be possible to salvage part of your investment by claiming a tax loss. If you lend money to a business that is related to your employment or business, or if you make a bad investment in a Ponzi scheme, you may be able to claim an ordinary loss.  Individuals who return their bonus or pay restitution may also qualify for an ordinary loss.  However, there are many restrictions on claiming such losses including:

  • Personal losses (for example, losses from the sale of your personal residence) are generally disallowed.
  • Capital losses may only be used to deduct $3,000 of income per year.
  • Losses from transactions involving related parties are frequently disallowed.
  • Losses from “passive activities” such as many investment partnerships are subject to limitations.
  • When claiming a loss, it is important to understand what type of loss you may qualify for and what risks you are facing.  For more information on how JVL Tax Law can help, see Bad Business Debt, Theft Losses and Casualty Losses, Partnership Losses, and Restitution.

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Services and Practice Areas

  • M&A
    • Entity Selection
    • Equity Compensation Plan
    • Earn-outs
    • Structuring
    • Bankruptcy and Debt Workouts
    • Joint Ventures
  • International
    • Inbound Investment For Foreign Investors
    • Outbound: PFICs and CFCs
    • Individuals Moving to and From the United States
    • Tax Compliance
  • Tax Losses
    • Bad Business Debt
    • Theft Losses, Casualty Losses
    • Restitution and Returns of Compensation
    • Partnership Losses
  • Services
    • Tax Services for Private Companies
    • Tax Services for Individuals
    • Financial Advisors, Attorneys and Accountants
    • Implementation
    • Tax Diagnosis
    • Outline of Areas of Experience
    • IRS and California State Tax Audits

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Directions and Contact Info

JVL Tax Law

535 Middlefield Rd, Suite 140

Menlo Park, CA 94025

650-999-0573

 

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MENU
  • Home
  • About
  • Services
    • Tax Diagnosis
    • Outline of Areas of Experience
    • Tax Services for Private Companies
    • Tax Services for Individuals
    • Financial Advisors, Attorneys and Accountants
    • Implementation
    • IRS and California State Tax Audits
  • M&A
    • Entity Selection
    • Equity Compensation Plan
    • Earn-outs
    • Structuring
    • Bankruptcy and Debt Workouts
    • Joint Ventures
  • Industry
    Experience
    • Financial Services: Private Equity, Hedge Funds, Cryptocurrency
    • Software and Tech
    • Lawyers and Law Firms
  • International
    • Inbound Investment For Foreign Investors
    • Outbound: PFICs and CFCs
    • Individuals Moving to and From the United States
    • Tax Compliance
  • Tax
    Losses
    • Bad Business Debt
    • Theft Losses, Casualty Losses
    • Restitution and Returns of Compensation
    • Partnership Losses
  • News
  • Contact