Hello TaxGuru,

I have a situation I'm not 100% sure what/how to do it. I am using TurboTax to do my taxes this year 2008.

In 2006, I invested $3,500 and bought 200 shares (1%) of a S Corporation company -- private stock ownership. In the last two years, I have received 2 Schedule K-1 and I have entered them on my tax return for 2006, 2007. This year 2008, the company went out of business -- I do not get a Schedule K-1 document. I did get a copy of the 1040S which the company reported to the IRS as having $0 (zero) income, noting that the company went out of business.

I don't know how to enter or report this information on my 1040. I wanted to claim loss/credit to the fair value of my investment. Can you explain to me what my options or best approach for this? any links, documentation I should consult?

Thanks.

~shawn