Question

Mult-member LLC loss reporting

Forum|Forum|7 years ago
March 28, 2019
1 reply
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I'm a member of an LLC partnership and we are reporting losses for the first year of business (2018). When we deduct the losses on our 1065, and split losses evenly among K-1's, the losses are not deducting on our personal tax returns. We are an investment club and only have losses relating to start-up costs.

LudwigVan_fan

Since this is an investment club, there really isn't any "ordinary trade or business" income or loss. It would all be related to investment income and investment expenses. In 2018, some investment expenses are either no longer deductible, or severely limited and don't result in a tax benefit. For more information, here are the partner's instructions for Sch K-1, and where items go on Form 1040 and/or related schedules.

https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**