Customer has been receiving a K-1 each year on a small passive investment made (in a hair salon) many years earlier.
Thru 2024, this investment had suspended losses of $1,835 and a remaining cost basis of $2,043.
I'm told this business ceased operations on or about January of 2025 and no 2025 K-1 was provided to my customer.
Can the taxpayer claim these losses without having made a taxable disposition and is there a specific form needed to show this ?
If so, is the suspended loss claimed on "E" and the basis recovered as a capital loss on "D" ?
Thanks for replies.
Thru 2024, this investment had suspended losses of $1,835 and a remaining cost basis of $2,043.
I'm told this business ceased operations on or about January of 2025 and no 2025 K-1 was provided to my customer.
Can the taxpayer claim these losses without having made a taxable disposition and is there a specific form needed to show this ?
If so, is the suspended loss claimed on "E" and the basis recovered as a capital loss on "D" ?
Thanks for replies.