emlvalko Posted February 16, 2008 Report Share Posted February 16, 2008 I have an S Corp that has a loss of over $130K in 2007 being passed to it by an LLC which it holds a 60% interest in. It has made a marginal investment in the LLC and the loss far exceeds it's investment. I have never in 25 years had this scenario and am challenged to even know for certain how to book it in the S. Corps G/L as well as the tax return? If anyone can reflect and respond to this challenge, I would be highly appreciative. Please feel free to ask questions if you need be to resolve any clarifications for your response. Write me at [email protected] or please respond here! Thank you for consideration of this situation and your counsel. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 16, 2008 Report Share Posted February 16, 2008 >>it holds a 60% interest<< Is the S-corp acting as a general partner or a limited partner? Quote Link to comment Share on other sites More sharing options...
emlvalko Posted February 16, 2008 Author Report Share Posted February 16, 2008 >>it holds a 60% interest<< Is the S-corp acting as a general partner or a limited partner? General Partner/Managing Member Quote Link to comment Share on other sites More sharing options...
jainen Posted February 16, 2008 Report Share Posted February 16, 2008 >>General Partner<< Passive activity? Quote Link to comment Share on other sites More sharing options...
emlvalko Posted February 16, 2008 Author Report Share Posted February 16, 2008 No active! Quote Link to comment Share on other sites More sharing options...
jainen Posted February 16, 2008 Report Share Posted February 16, 2008 >>Today, 10:17 PM<< That only took nine minutes. You seem to have all the answers ready to hand, so what's the problem? Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted February 16, 2008 Report Share Posted February 16, 2008 Debit the g/l account "K-1 Loss" and credit the investment in partnership for the amount of marginal investment. Keep track of the suspensed loss and record the release in the year(s) basis becomes available. Quote Link to comment Share on other sites More sharing options...
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