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Loss of the investment in LLC

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    Loss of the investment in LLC

    A client invested $350,000 in an LLC making movie films. LLC was never successful in finishing making films and projects are abandoned. So he wants to claim as Loss of the investment money to offset with other income including K-1 income from the LLC.

    Normally, film making process takes a few years. Then, in what point of time & what kind of factors would be needed to claim as a Loss? Capital Loss (subject to $3,000) on Schedule D of 1040?

    #2
    my thoughts

    It sounds like the LLc isd still operating. So the only way he can claim a loss is if he sold his share or has proof of abandoning it. I doubt he has either.

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