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Capital loss carryover in profit year

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Junior Member
What is the name of your state? Kansas
Health club LLC experienced a fire causing a total loss to business. Owner had 'business continuation' insurance, so
as a party to the LLC, I had loss of $3,800dollars. I understand
that the max loss for tax year is $3,000dollars, but my question
is what about the remaining $800dollars if the following year is
profitable? With such a small amount, I suspect that this is still
categorized as being 'long term' because of initial capital investment? thanx for your time and assistance.
...sorry...try again...

Health Club LLC was formed October 2000 and carried a
$380dollar capital loss for the Oct-Nov-Dec. months.
(cost of new improvements)
The LLC was showing profit for Jan and Feb of 2001
then in first week of March a heater in the sauna became too hot and ignited causing a total loss in structure and contents.

Health Club LLC has re-opened after 7months downtime.
Closed March 5, 2001 and opened October15, 2001

$30,000dollars was initial investment and $3,800dollars
is my 2percent share.

I am silent partner and do not participate
in day-to-day operations.

Thanx again...
Last edited:



The tax aspects of this depend on facts you have not given. Is the LLC still doing business? If so, was your $3,800 loss your share of the LLCs loss for the year? If not, was your $3,800 loss the total amount of your investment in the LLC? Did you actively participate in the business?

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