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Tax Law (Questions About Taxes)/Claiming loss on dissolved company


Hello! My husband and I invested $6200 in 2009 to help start an online company(llc) with several other people. We took a loss of about $-200 each year and now the company is dissolved. I worked for the company for a few years for more shares instead of pay. When the company dissolve I had gained 12% of the company. My two questions are 1) can we claim the $6200 loss on our taxes and 2) do I claim the 12%  I worked for or just the actual cash we lost?

Thanks for your knowledge!


Thanks for your question.

You can take a deduction for the $6,200.

You can also take the loss on the other shares if you reported them as income (as you should have) when they were received.  If you did not report them as income, you have no tax basis in those shares and therefore, you have no loss.  Handled properly, you should have received a W-2 for the value of the shares you received in lieu of salary.

Hope this helps.

John Stancil, CPA  

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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