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pelleke
New Member

I have a hard time determining if I should file my K-1 investment "at risk".

I started a partnership LLC in 2014, to which I own part of the founder's stock as a general domestic partner. The business has been funded with investment money, and booked a loss this year that shows up on my K-1.

I work for this business full-time, and while I did not invest my own money into the business, my partnership in the business is considered part of my compensation.

Am I allowed to consider this an at-risk investment on my tax return?
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1 Reply
WillK
Intuit Alumni

I have a hard time determining if I should file my K-1 investment "at risk".

Yes, this could be considered at risk on the tax return if you did not receive compensation and it stayed in the company. If the business was to go out of business or file bankruptcy, then you would lose your compensation that was invested in the company. 

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