LLC Question

Forum|Forum|7 years ago
December 18, 2018
1 reply
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I invested in a LLC that went bellyup. The last K-1 I received from them was 2 years ago and reported a passive ordinary income loss. I know this loss can only be offset by other passive income, of which I have none. My question is, does this passive ordinary income loss offset my capital investment and prevent me from taking a long term capital loss on my original investment? And if so, how do I cover that in turbo tax since they went out of business and never issued any more K-1's, or any other type of tax document showing they went under?

Any input on this would be greatly appreciated, thank you.

Carl11_2

Employee

Does/did the last K-1 you got, have the "final" box checked at the top of the form?

Also, what kind of K-1 was it? A 1065-K1 or an 1120-S K-1? If you look at the form in the top left it's labeled "Schedule K-1" and below that in parenthesis will have either "Form 1065" or "Form 1120-S"

BGCAuthor

Employee

Thanks for responding Carl. Answers to you questions are as follows:

No, the K-1 does not have a box checked as final or as amended.

It is a 1065 K-1.

Carl11_2

Employee

On that K-1, is the box on line D checked? Also, on line G are you identified as a general partner or limited partner? On line H, Foreign or Domestic?