I have been invested passively in an LLC since 2017. My initial investment was $50K. I have accumulated an $83K income loss on my K-1 that has been carried forward through 2024. The business is being liquidated in 2025 with a negative equity on the balance sheet. Assuming no additional income gain or loss on my final K-1, Turbo tax is showing that I will realize an $83K (income carryover) loss AND a $50K capital loss since I have not been repaid any of my investment and the business effectively has no value (basis is $50K and $0 sales price or value). Is this correct? If not, please explain what losses I can claim.
