2% shareholding now worthless

[no1chebon]

What is the name of your state? Kansas
3% share (30k) has become worthless in a Health Club L.L.C. due to the fact the biz is shutting its' doors. Initial investment was year-end 2000 and declared 39dollar loss. 2001 was 3285dollar loss and nothing yet on 2002 but owner is giving-up because of legal setbacks. My question is: Do I begin tallying-up 3000dollar loss at each year-end and show remainder as carry-over?
The shares will never be sold as they are now worth zero cents.
Thanx for your prompt answer...

 

[abezon]

The final K-1 should contain the analysis of your capital account and will pass any final losses to you. You'll probably report the losses as ordinary losses (not capital losses) & take them all in one year.

You should definitely make sure the LLC hires a good accountant to prepare the final return & Schedule K.