Mike, one more clarification: The company that owned this failed investment started other projects in which I had also invested. All of their properties were foreclosed on in 2024. When I asked about the large ordinary income loss shown on this particular K-1, I was told the following: "It looks odd at first, but it is correct. It's a tax loss, not a cash loss. It comes from the foreclosure and overall losses being allocated based on ownership %. Silver lining." Does that change your response about how much of that large ordinary income loss can be used to offset other income? Again, I correctly showed my basis in this project as $20,000 on the K-1 Additional Information form in TurboTax, but TurboTax is still giving me a deduction for the full $125,000 loss shown in the K-1. I would have to overwrite something or make some other adjustment on the K-1 to change that. Guidance please???
