jtax
Level 10

Business & farm

My first thought is that if ABC continues to exist and you still own the same interest in ABC then you haven't lost money on it. If it (ABC) has recognized the loss in XYZ it should pass your share on to you by a negative number in box 8 or box 9 of the 1065 K-1. You could ask the LLC manager about that.

 

Note also that just because an investment goes to zero doesn't mean you have "recognized" the loss. For a security to be worthless it must be permanently worthless, no chance of going up in value. ABC would need to make that determination. For general info on worthless securities and loss deductions see https://www.thetaxadviser.com/issues/2012/sep/clinic-story-07.html

 

What boxes have an entry in them. Don't need the amounts, just what boxes. If it's boxes with codes (like box 20) give the code also.

 

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