If the biz actually folded in 2003, then generally you'll
have until April 15, 2007 to file the LLC's tax return (Form
1065) to show the loss.

If you and your friends (you) were not the general partner
of the LLC, the IRS will most likely consider you as a
passive investor so any losses that pass through to you
would be subject to the passive loss rules. However, a court
case ruled that LLC members are general partners for
applying the material participation rules so in that case,
the LLC members were allowed to deduct the loss as an
ordinary loss.

Rudy
www.LizcanoTaxServicesLLC.com

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Way back during the tech boom of 1999, some friends and I
decided to be angel investors in a startup (autoeloan.com).
Since the minimum investment was 25K, several of us pooled
together to form an LLC. My share was 5K.

After the bust, the venture died a long slow death and we
lost touch and I didn't keep on top of it as I should have.
How can I or how could I have claimed a loss on it? Does a
Schedule K need to be filed? I think autoeloan.com folded in
2003 and I'm not sure if the LLC was ever declared dead.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >