cpabsd Posted July 21, 2009 Report Posted July 21, 2009 Client invested $75,000 in a travel club in Las Vegas during 2007. There already was an LLC in existence. My clients actually invested through one partner who owned 33% of the LLC. The K-1 for 2008 is issued in the original partner's names but provided to my client. It shows a large loss. The partner who my clients invested through took the money and disappeard. The business went belly up. How do I treat this loss? they never really owned any of the LLC per the document. Is this a business bad debt with 100 % fully deductible in 2008? There is a warrnet out for the partner who disappeard and a police report was filed. Thanks for any guidance. Quote
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