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Tax Court Finds Ordinary Bad Debt Loss on Loan Related to Venture Capital Business

Posted in Deductions, Funds, General

The Tax Court held that a Venture Capitalist was entitled to an ordinary loss on a failed loan to a business associate, finding that the loan was related to the lender’s VC business. The Venture Capitalist made the loans to an individual who agreed to provide business leads. The court concluded that business nexus required… Continue Reading