We created an LLC to make a low budget movie. We have several investors and we invested in the movie ourselves. The movie had the misfortune of coming out during COVID. It seems now that we will take a loss.
Each year we issued K-1s to the investors as revenue came in, but now it appears that the movie will end up losing money. It is now a long term capital loss. Can our loss be written against capital gains? And is this any different from any other loss on an investment?
