Thanks for your answer. So I got into this entity because I bought stock in it first, which is now worth 0. So when you say "sell", I assume you are referring to when I sell or get rid of this 0.01 (penny) stock? Essentially I will have to ask the broker to remove this "worthless investment". At that point the K1 #s come into action when calculating profit (well loss really in this case).. But I still miss something.. In terms of cash transaction - I paid X upfront to buy stock, there is no transaction done after that - the K1#s really are not coming into my bank - then how come at the end when I sell, suddenly they become part of the action..
Normally I would have had X as loss and used that to write off other cap gains.. But now what happens, I can't do that? If eventually after taking into account the K1#s I end up with a loss of Y, I assume I can use it to offset other gains.. This is so fishy or at least flying over my head..
