Taxpayer set up a single-member LLC to buy into a hotel building LLC (taxed as a partnership) in a fracking area. Unfortunately, the fracking stopped and the hotel project went bust and has gone through bankruptcy. The members, as part of the settlement, are required to pay off loans to the bank. My taxpayer has a basis of $83k and has to pay another $50k for his share of the payoff of the loan.

Does this just appear as a Sch D item with a $133k long-term capital loss?

Thanks for anyone's input.