Wednesday, August 17, 2011

Schedule K-1: how to report the following?

the LLC incorporated in 2009 and will dissolve dec 28, 2009. we incurred a loss and i received a return of my capital less than the initial investment. On the K-1, do I report the loss as Ordinary Business Income (Loss) in Line 1 of Part III, or as a ST capital loss in Line 8, section III? Or both? also, Line 19 - distributions. My disb'n was more of a return of capital. what should i put in Line 19 - Distributions?

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