2

I have been a minority owner of an Ohio LLC. The franchise closed in 2009 but the LLC just dissolved December of 2014.

I haven't been able to deduct losses from my W2 wages as I haven't been actively doing anything with the LLC and am a minority owner.

I had been told that once the LLC dissolved I would be able to claim the losses against active income/W2 wages. In researching this I can't seem to confirm that this is allowable.

Any comments?

2

You're talking about passive loss carryover. Yes, you can deduct them once the entity which generated them is dissolved. If your K-1 is marked final (one of the two check-boxes on the top of the form) - you can apply the losses to any income. See the IRS Publication 925 for details.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.