In 2016 I invested $30,000 of post-tax income into a friend's private equity fund as a limited partner using my California LLC that is owned 50/50 between my wife and me. I will be issued a 2016 K-1 and I can deduct my % ownership portion against fund and portfolio company startup costs.
However, is the original $30,000 investment tax deductible against my income? I work full-time at a completely separate financial services firm as a W-2 employee.
