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From: sdl@rayssd.UUCP
Newsgroups: net.taxes
Subject: Re: Question about a investment loss.
Message-ID: <384@rayssd.UUCP>
Date: Sun, 5-Feb-84 15:07:56 EST
Article-I.D.: rayssd.384
Posted: Sun Feb  5 15:07:56 1984
Date-Received: Wed, 8-Feb-84 09:55:25 EST
References: <433@inuxd.UUCP>
Organization: Raytheon Co., Portsmouth RI
Lines: 15

Try Schedule D (Capital Gains/Losses), of course.  That's the
usual way to report investment losses.  

If the company went out of business less than a year after he made
his investment in it, it's a short term loss, fully deductible at
earned income rates.  More than a year, it's a long-term capital loss,
for which only 40% of the loss is deductible.

If the investor incurred any investment expenses in making the investment
(like he paid a broker or lawyer), add this to the amount of the origiinal
investment to increase the size of the total loss reported.