His only rationale seems to be its not documented as carried losses on personal last years return so doesn't count as too far back in history to amend.
The 2022 return of 60% of the original investment as a legal settlement I guess could be counted as income. From years 2014 to 2021 there was increasing losses (original investment then legal fees) with most of the losses (disallowed) counting in 2014/2015. All in all we spent 1.1 million between 2014 and 2015 and got 650k back or so in 2022.
The LLC was dissolved at the end of 2022.
