How to enter worthless personal investment in LLC?

[crottman]

I invested $100,000 in an LLC about 10 years ago. I am a passive investor. I have kept track of the basis. I have not received a K-1 for either 2015 (when it was being sued) or 2016 (when the bankruptcy became final). I have not received anything as a result of the bankruptcy. Therefore I am declaring my investment worthless in 2016 (or abandoning it, which I believe is the same effect). My understand, from talking to several others, is that I should be able to get a ordinary loss of the full basis. A related question suggest: do investment income; stocks, mutual funds; start/update; type of investment--everything else; net proceeds = 0, date of sale 12/31/2016; acquired--other method; cost basis--enter it; date of acquisition--enter it. However, this just give the net $3000 net ordinary loss. Alternatively, when I tried to enter it using the K-1 already in the system from previous years, it seems not to affect the refund (maybe because I am a passive investor?). Can you help show how to get this into the software?

[Hal_Al]

You do not have an "ordinary loss". You have a long term capital loss. The "related question" properly described how to enter it. It goes on form 8949 and schedule D where it is combined with other gains and losses. The resulting loss goes on line 13 of form 1040, but is limited to $3000 per year. The rest (presumably $97,000) is carried forward to next year.