I bought into a company that has since dropped in value significantly. Can I deduct my loss?

Purchased about five years ago while on the Board of Directors. Since then the company has been bought out and my ownership share has been significantly diluted. This is not a publicly traded company. From an initial investment of $500,000, it is probably worth about $10,000. Would this qualify for a tax loss and is it an ordinary loss or a capital loss?

It is not a loss until you actually dispose of the investment. If you only dispose of part of it then only a portion is "recognized".

You can sell it and buy it back and deduct the loss if you wait at least 30 days to sell it back.

As a suggestion, as the company if they are willing to buy back some shares?

its an ordinary loss. u can find the best to gt tax deductions

the following will help u in finding the information

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