This issue (determining deductibility) is beyond the scope of a forum such as this. Having said that:
There are only certain legal expenses that are deductible...
When applying the material participation rules, participation by a shareholder’s spouse is considered participation by the shareholder.
While your facts are not...
Got it.
Based on the facts for this K-1:
Enter the $165 in the ordinary income box
Your overall loss, as indicated previously, is $1,024
Because some of the lo...
