For the complete documentation index, see llms.txt
For the complete documentation index, see llms.txt
Wefunder
Help center
Claiming a tax loss when a company shuts down
When a company you invested in dissolves or shuts down, your investment generally becomes worthless. What that means for your taxes depends on how you invested — and whether you can claim a loss is ultimately a question for your tax advisor.
## Does Wefunder issue a tax write-off document?
Generally, no. Wefunder does not issue worthlessness letters or tax-loss documents. Your tax advisor can determine whether, when, and how you can claim a loss.
## How the loss is generally handled
If you invested through a partnership/LLC (most funds and many SPVs), your share of any loss is reported on that entity's K-1, which you'd use when you file. If you hold a direct SAFE or convertible note in a C-corp, there's no K-1; your tax advisor can help you determine whether and how to claim a loss if it becomes worthless.
## Confirming a company's status
Check wefunder.com/portfolio for the latest status. Companies sometimes also send a formal dissolution notice. Unsure? Email updates@wefunder.com and we'll share what we know.
## Important
This is general information, not tax advice. Worthless-security and capital-loss rules depend on your situation — please consult a qualified tax professional.
