Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I invested $5000.00 in a business with Conner Legacy

Customer Question
I invested $5000.00 in...

I invested $5000.00 in a business with Conner Legacy Inc.,called Heckler Sports which failed and all assets lost. I received nothing and lost the entire investment. How do I claim this loss on my taxes?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Heckler Sports was a social media startup that allowed sports fans to communicate during professional sports games and "heckle" each other. It seemed to have great potential, but did not catch on as we had hoped.

Accountant's Assistant: Is there anything else important you think the Accountant should know?

No, I don't think so.

Submitted: 3 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
3/26/2018
Tax Professional: Lev, Tax Advisor replied 3 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,140
Experience: Taxes, Immigration, Labor Relations
Verified

If you own securities, including stocks, and they become totally worthless, you have a capital loss but not a deduction for bad debt. Worthless securities also include securities that you abandon.

To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it.

Treat worthless securities as though they were capital assets sold or exchanged on the last day of the tax year.

You must determine the holding period to determine if the capital loss is short term (one year or less) or long term (more than one year).

Report worthless securities on Form 8949, Part I or Part II, whichever applies. Indicate as a worthless security deduction by writing Worthless in the applicable column of Form 8949.

Let me know if you need any help with reporting.

Ask Your Own Tax Question
Customer reply replied 3 months ago
would the investment I made be considered a worthless security? If so how do I report the loss?
Tax Professional: Lev, Tax Advisor replied 3 months ago

Based on your information - yes - it is a worthless security.

You will report disposition of the worthless security as deemed sale at zero price.

As your basis (original investment) was $5000 - you will realize $5000 capital loss.
That is reported on form 8949.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 3 months ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all Social Security / Tax related issues.

.

I would like to take this opportunity to wish you peace, love and happiness. Happy Easter!

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,140
33,140 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I'm a us resident, and invested in a startup company in
I'm a us resident, and invested in a startup company in Mexico (as a cofounder), the company is incorporated in Mexico only, Can I deduct it from my taxes? Does the company needs to be setup in US as … read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
I was a founder in a startup firm and ceded my stock at no
I was a founder in a startup firm and ceded my stock at no cost to the other founders. The bank required my name be removed on a line of credit. Do I need to report anything on my taxes? Is removing m… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Are you an expert on regular iras and contrubution. Last
Are you an expert on regular iras and contrubution … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,140 satisfied customers
Lane -- Please review our last conversation. You were
Lane --Please review our last conversation. You were extremely informative -- and clearly, an expert in the complex IRS code.We would like to know any IRS rulings that would block our current structur… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
I received a K-1 from an S Corp that I belong to. The
I received a K-1 from an S Corp that I belong to. The business sold some assets during the year. There are amounts in box 9a (long term capital gain/loss) and box 10 Net section 1231 gain loss. Can yo… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,140 satisfied customers
Wife dies 3/1/2015; rental owned as community property; only
Wife dies 3/1/2015; triplex rental owned as community property; only child inherits ½; I, as surviving spouse, retain ½. Purchase range for rental on 8/1/2014 for $600 (5 year life; ½ year convention)… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,140 satisfied customers
I have received Kickstater(crowd funding) 1099 in 2014. This
I have received Kickstater(crowd funding) 1099 for 130K in 2014. This money is being used to produce a video game. It will not be complete until late 2015 or early 2016. I have expenses of 25K in 2014… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
I'm doing my taxes and I reported 50k in gamble winnings from
I'm doing my taxes and I reported 50k in gamble winnings from casino with my w2g form. I paid 12.5k in taxes for it when I received my winnings. If I lost 50k for the year as well, can I put this numb… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,461 satisfied customers
I invested in a startup and purchased 100,000 shares of stock (C corp) for $10,000 in Febr
I invested in a startup and purchased 100,000 shares of stock (C corp) for $10,000 in February 2014. The company was incorporated in NV, but the corporation was never renewed and is currently in defau… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Hi Lev, I lost my deducions for a rental property because
Hi Lev, I lost my deducions for a rental property because my AGI went over 150,000. How else could that property be handled so I wouldn't lose the deductions?… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,140 satisfied customers
My client invested 44,000 for business start up costs for her
My client invested 44,000 for business start up costs for her boutique in 2013. I know you normally can amortize the costs over 180 months, however, she went out of business this June. She cashed out … read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
I invested $15k in a business about 10 years ago. I was not
I invested $15k in a business about 10 years ago. I was not active in the business at all. Purely a cash investment. The business closed and I received nothing from the business. The full investment i… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,140 satisfied customers
Background: An individual is creating a marketplace website.
Background: An individual is creating a marketplace website. Initial investment (web development and other start-up costs) is approximately $50-60k, much of which to be spent in 2012, self-funded. Com… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
Our S Corp is involved solely in rental activities and all
Our S Corp is involved solely in rental activities and all of its income is derived from rental activities. We have also invested personal funds into the S Corp to offset losses incurred in operatoin.… read more
USTaxAdvising
USTaxAdvising
Partner
Bachelor\u0027s Degree
1,099 satisfied customers
Invested in a movie that has basically stopped producing any
Invested in a movie that has basically stopped producing any hope of return on investment. Received about 30% back on investment of $250,000. Directors of the LLC refuse to provide updates but once a … read more
Dr. Arthur Rubin
Dr. Arthur Rubin
Doctoral Degree
173 satisfied customers
2 separate items related to Rental Prop 1st I recd 1099C
2 separate items related to Rental Prop – 1st I recd 1099C w/amt of canceled debt of 62K w/property FMV of 119K, personally liable for the debt (recourse). The adj basis of the rental prop is 168K. Pe… read more
socrateaser
socrateaser
1,452 satisfied customers
I paid $6,000.00 to a invention company for a idea I had for
I paid $6,000.00 to a invention company for a idea I had for a new game to sell on the market. They took my money and later on told me that they couldn't find anybody to sell it on the market. Can I t… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,140 satisfied customers
Shareholders loan money to a business. If the business ...
Shareholders loan money to a business. If the business cannot repay this, is the bad loan deductible on the shareholders personal tax return? If not, can this be converted to equity and a loss claimed… read more
Guru_Guy
Guru_Guy
Doctoral Degree
1,634 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x