Negative Liquidating Distribution on K-1

[Jenno2323]

I was a member of an LLC formed in 2022 that dissolved in 2024. I selected Complete Disposition in TT for the partnership disposal. I did not sell my shares and we all lost our initial investments. We never had distributions. My partnership basis from initial investment, additional capital contributions, and the income (loss) from ordinary business was $1,696. On my 2024 K-1, the final liquidating distribution was -$2,696. I am not able to enter a negative sales price from the K-1 Sale Information screen. How do I accurately capture my capital gain/loss?

[RobertB4444 · Accepted solution]

Enter this as a sale in schedule D.  Do that by scrolling all the way down in the wages and income section of your federal return to Investment income and clicking start next to "Stocks, Bonds, Cryptocurrency, Other".  

It will be entered as a sale for zero dollars with a cost basis of $2,696.  The purchase date is the date of your initial investment and the sale date is the date that the LLC shut down.  

@Jenno2323