Do I need to input a K-1 for a LLC that is reporting a loss, and where I'm a "passive activity participant" member? I have no other passive activity income.

You certainly should report that.

You won't be able to deduct the loss this year but you want to report it so that when you do sell the investment you can recognize the loss at that time.

Tom Young

Thanks, as a follow-up question.  I also got a K-1 from the same LLC for the prior year which I didn't report. Can I report it as "passive activity" loss carryover from prior year in this year's tax return vs. amending last year's tax return?

I really don't know.  Amending is the most correct way to handle this, but with a passive loss that you couldn't deduct in any case I'd think the omission could be overlooked, and taking the cumulative loss in the year of the sale is certainly correct.