Write offs and Tax Law

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I'm really having trouble finding good guidance on when I can and cannot write off a failed startup.

To me, that's a huge deal. I'm employed. If I can write a failed investment off my regular W2 income at tax time, that lets me recoup 37% of the loss.

Does anyone have good guidance/articles on this? I've found various writeups which are confusing. My CPA says they can be written off, but it sounds like that only applies up to a certain size.

Can I write off a failed SAFE? I'm assuming so.

Can I write off failure in a 100,000,000 valuation where I hold private preferred stock? I'm guessing not.

If I can write this stuff off, I can be far more aggressive.

Tips?

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VoraciousCuriosity

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Posted: 3 years ago
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