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Employee
February 18, 2022
Question

Buy cars as investment for sale

  • February 18, 2022
  • 1 reply
  • 0 views

I am a partner at a dealership. I don't own it. But I have provide capital to buy & my friend who has license to sell cars, sell them. Apparently I had a loss last year.  How I report my losses on my return.  I didn't open an LLC.  Just used me personal bank account to write checks

 

 

 

 

1 reply

February 18, 2022

if you are a partner in a dealership - either as a partner or S-Corp shareholder, you should be getting a K-1 from the entity.   if you do not understand this, you should consult with a tax pro who can review your situation.  until you know exactly what you have, proper guidance for tax filing is impossible.

 

stechAuthor
Employee
February 18, 2022

I understand what K-1, 1120 etc  is.  That dealership is not a S-Corp or Inc.  Its an LLC. Legally I may not be a partner. As I used my personal funds. 

 

Can I list those cars I bought,  its cost and cash proceeds on my return? I do have bill of sale for all transactions

 

Can I get 1099-MISC as loss instead of income?