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Get your taxes done using TurboTax
I have resigned from an LLC that I established in 2004 with 2 friends and my wife. Very small, shoestring business, but one that is still functioning.
I contributed $8,000 as a no interest loan to get the business started in 04. We have been filing K-1's every year since. For the most part our K-1's have shown small losses (I retained 10% of the company and my wife has 4%. Last year my profit shown on K-1 was the largest ever $686.
While we paid taxes on our share of profits and filed losses over the years, all funds have remained with the company.
I resigned from the Company on Jan 1,2019. The most the Company could repay me on the original loan of $8,000 was $4,000. I accept that amount as final payment and transferred my 10% to the other 2 partners. My wife retains her 4%.
I took a $4,000 loss from this LLC. How can I enter that as a business loss on my 2019 taxes? Neither the original loan nor my loss has ever been recorded on my K-1's by the firm that does the taxes for this business.