fireman-175
Junior Member
Our new LLC entered into a Real Estate Purchase and sale agreement to purchase a parcel for development. We hired contractors and spent money during a feasibility study period. At closing time, the Seller no-showed and has not been heard from since prior. Thus, the Agreement defaulted. Our loss was about $18k. We are now dissolving the LLC. My question is can we take that loss (split equally) on a K-1 and deduct it on our individual tax returns? IRS form 365 (?) seems to indicate so. Basically, we tried a business that didn't succeed during the formation part. We never actually did any business other than spend for the feasibility expenses.
Thank you.
Thank you.