I lost all of the $25000 I invested in a restaurant. Entered my K-1 info each year and didn't see any impact of this loss on my taxes. Why not?
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yogamaria
New Member

I lost all of the $25000 I invested in a restaurant. Entered my K-1 info each year and didn't see any impact of this loss on my taxes. Why not?

As a limited partner/investor in a restaurant, I was issued a K-1 every year for five years, and each year reported a loss.  The restaurant finally closed this summer, and my entire $25,000 was a loss.  Isn't this something that I can write off on my taxes?  There seems to be no repercussion via TurboTax.  I know that when my dad lost a similar amount in the stock market (on Motorola!), he was able to take a $3000 deduction every year until the loss amount was used up.  Please advise! 

1 Reply
Hal_Al
Level 15

I lost all of the $25000 I invested in a restaurant. Entered my K-1 info each year and didn't see any impact of this loss on my taxes. Why not?

See https://ttlc.intuit.com/questions/2899549-how-do-i-deduct-worthless-stock

If you have no gains to offset with the $25K loss, you will be able to deduct only $3000 and carry the $22K forward to next year

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