LLC Losses

[TAX]

4 memebers in LLC - first year. LLC will have 115000 loss. This is a passive loss.
LLC owns only realestate

Each member will have 28,750 loss on K-1.

Loan from member = Zero
Capital Contribution = 309,750 by each member

(1) Can each member deduct loss upto $25,000. I.E. Passive loss limit of $25,000 applies to LLC or each member?

(2) Capital contribution (Basis) will allow them to deduct losses, right?

Thanks in advance.

[Gretel]

1. applies to each member

2. yes

[BOB W]

Don't forget.....

..... the $25,000 limit is also limited by their personal AGI........