Then I was right with my original assessment during preparation regarding personal investments at risk and investments. Turbo Tax was just asking again in a way that made me doubt my reasoning.
The ownership share, is just the value of the ownership and doesn't play into the adjusted basis. I have not made any additional investments from personal funds (eligible claim value). There have been no distributions that would provide recovery of that investment (reduction in eligible claim value). And the revenue generated has been from services not personal funds.
The loss is not greater that the share/business value. And this has no bearing on the calculation other than to say the business is in not in debt. If I were to take any of this value it would be a distribution that would count against the investments.
So because I have made no personal investments, I have not added to the value of the business, there is $0 to use for evaluation of the deduction. $0 (max deduction) of the loss can be claimed.
Do I have that right?
Thanks for helping simplify and rationalize this.
