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 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.