I invested $4,500 in an S Corp and became a passive investor. I just received the K-1 forms showing losses for 2015 and 2016. Since I am a passive investor and cannot offset other non-passive incomes with losses from S corp. Do I need to file an amended taxes for 2015 and 2016, as there would be no change to the tax amounts?
In addition, the S corp was dissolved in 2017, can I just take $4,500 loss against other non-passive incomes in 2017? Thank you.
Yes, you will want to amend your prior year returns to report these losses, even though you will not currently be able to deduct them.
This is because when you sell your asset, you will be able to take the losses at that time.
Thank you. Since the S corp was dissolved with no value in 2017. Does it mean that my shares were automatically sold for $0 proceeds? And I can take $4,500 loss in 2017?