Mult-member LLC loss reporting

[guenetter]

I'm a member of an LLC partnership and we are reporting losses for the first year of business (2018). When we deduct the losses on our 1065, and split losses evenly among K-1's, the losses are not deducting on our personal tax returns. We are an investment club and only have losses relating to start-up costs.

[LudwigVan_fan]

Since this is an investment club, there really isn't any "ordinary trade or business" income or loss.  It would all be related to investment income and investment expenses.  In 2018, some investment expenses are either no longer deductible, or severely limited and don't result in a tax benefit.  For more information, here are the partner's instructions for Sch K-1, and where items go on Form 1040 and/or related schedules.

https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf