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Investors & landlords
Yes, my husband and I are both salaried employees in banking and government. We file a 1040. Our partner is a self-employed carpenter who has an LLC that is a disregarded entity and files only Sch C. We formed an LLC for the purpose of building this spec home and possibly others. Our partner owns 50% and my husband and I own the other 50%. All of the expenses regarding the home were capitalized into the home and once sold, we had a $20,000 or so loss. Any LLC expense outside of the home (secretary of state filing fees, for example) were minimal and included on the form 1065. I am wondering how to show the loss on sale on the LLCs tax return and associated K-1s. Are we allowed to each recognize $10,000 of loss on our 2020 tax returns (as it would flow thru the K-1s)?