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February 26, 2023
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Investment in LLC

  • February 26, 2023
  • 1 reply
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I invested money in an LLC a few years ago and an active partner.  The LLC went out of business in 2022.  How and where do I deduct my initial investment? We never received any returns or distributions back to the partners. 

    Best answer by Mike9241

    you take a long-term capital loss. but first you must reduce the amount invested by any losses and reductions in basis  reflected on the k-1s 

    1 reply

    Mike9241Answer
    February 26, 2023

    you take a long-term capital loss. but first you must reduce the amount invested by any losses and reductions in basis  reflected on the k-1s 

    Leannerv2Author
    February 26, 2023

    Thank you so this would be reported on Schedule D?  The 2021 K-1 is the final one so I would just put final on the K-1 in 2022 tax return and have no activity?