PatriciaV
Expert Alumni

Get your taxes done using TurboTax

If you have previously reported this LLC on your TurboTax return, you can edit the existing investment and report a final "K-1" and that it was "disposed of" in a complete disposition. This allows you to claim no sales proceeds and write off your remaining investment (or report the overall loss). You don't need to enter any income or expenses from a K-1 in order to report the dissolution of the partnership.

 

It's not necessary for the LLC to have filed a final return with the IRS. You simply report that you no longer own an interest in the partnership.

 

You would only need to file an amended return if the LLC did send you a final K-1 at some point and there was activity that changed the loss you claim for the investment.

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