Can I write off an SPV investment if it goes to zero?

Note: As an administrator, Sydecar does not provide tax advice. Please consult your tax advisor if you require further guidance.

If you have invested in an SPV or fund as an LP, you will receive a K-1 tax document each year that shows any taxable gains or losses from your investments. An investment that has gone to zero will be reflected in your K-1 for the year.

Since VC funds pass-through tax liability to their investors (LPs), it is the responsibility of each investor to report gains / losses in their yearly taxes.