You will treat the amounts paid by you as if you had made a capital contribution to the LLC. Since you already determined your final gain or loss last year, when you received your final Form 1065-K1, these expenses essentially become capital losses; short term, as long as they were not used on the final Partnership return. This is treated like a business bad debt which is why it would be considered short term.
Report this on Schedule D using the steps below.
- Open your TurboTax account > Select the Personal tab then Personal Income > I'll choose what I want to work on (Desktop version) or Wages and Income (Online version)
- Scroll to Investment Income > Select Stocks, Mutual Funds, Bonds, Other > Start or Update
- Add or Edit your sale that is NOT reported on a Form 1099-B > Select to enter a business bad debt
- Enter the Total Proceeds zero > Cost Basis (total amount of business expense)
- Enter the holding period - short term
- Continue to finish your sale/bad debt.
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