Albuquerque Journal (Albuquerque, NM)

Loss on business is probably deductible.(Business Outlook)

Byline: James Hamill For the Journal

Q: I started a business three years ago and, on the advice of my attorney, I incorporated. After a few frustrating years of little business success, I terminated the business this year.

I invested $35,000 that I will not recover. Can I write this loss off on my 2003 tax return? My wife will earn about $45,000 this year, and I expect to earn $30,000 from a new job.

A. You probably can. The loss that you incurred relates to your investment in stock of the corporation. Stock is typically a capital asset so that a loss from a stock investment is a capital loss.

Capital losses can be used to offset capital gains. …

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