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chris510
Returning Member

Amending tax return for passive activity loss

I want to amend my 2023 and maybe my 2022 tax return to write off a bad investment loss.  It is a passive activity loss.  I invested into a small business that had to do with a farm producing medicine.  From other forum posts, it seems like I can just open my 2023 file in Turbo Tax and click the "amend" option.  then go to Search and look for Schedule D.  but I wasn't sure if I'm supposed to go to form 8582.

- We did not receive a K1.  It was poorly managed and the team basically ran it into the ground

- It's not a rental or a stock loss.  So I wasn't sure which section to go to

- I'm aware there's a limit of 3K to write off against income.  I didn't make money on stocks in 2022, but I made about 20K in stock on 2023. It makes sense to amend my 2023, but not so sure if it's work it to do on 2022.  

- I have paperwork to prove I put in the money to the business, documents to prove I'm part of the investors, and paperwork showing it closed.

 

Thanks!

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chris510
Returning Member

Amending tax return for passive activity loss

I was able to go toSchedule D in TurboTax.  It took me to where I entered my stocks previously, but when writing off the investment loss, it was just a one liner entry to put in cost basis and gain.  I saw that the 50K loss did give me a refund.  I'm just not sure if this is the right way to do it since this was a business investment loss where I was a passive investor.  I could go to the business section where I would enter a K1.  but again, I did not receive any paperwork such as a K1, 1099B, etc. 

 

It was just a poor investment and I'm hoping to just get back a little thru taxes.  Thanks for any help!

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