Selling Residual Interest to Write Off Investment Losses

As the end of the year approaches and tax considerations become top of mind, many investors start thinking about writing off their losses.
SRS Acquiom is sometimes asked to purchase residual interests in unsuccessful investments, so its clients can realize losses for tax purposes in a given calendar year. The ability to realize the tax loss in the current year can be far more valuable than any potential upside, and it can eliminate further carrying costs.

An IRS audit may require proof that the stock was sold at a loss, and selling worthless or downgraded shares for $1 is frequently the best solution if an orderly wind-down process has not been completed. When a wind-down is planned, selling residual interest can help investors accelerate a loss for tax purposes in a given calendar year.

Paul Koenig

Chief Executive Officer tel:303-957-2850

Paul is the chief executive officer and co-founder of SRS Acquiom.

Before co-founding SRS Acquiom, Paul was one of the founding partners of Koenig & Oelsner, a Denver-based corporate and business law firm with a strong practice in mergers and acquisitions, securities, and financing transactions. Prior to that, he was an attorney in the Chicago office of Latham & Watkins, and in the Colorado office of Cooley LLP.

Paul has authored numerous articles and is a frequent speaker at industry events. He received his BBA in finance from the University of Iowa and graduated from Northwestern University School of Law.

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