K1 Losses for LLC to Individual partners

[Nagesh Pulipati]

Hi,

one of my investor would like to invest from his LLC, his question was if he gets negative K1 at the end of the year on his LLC name, can he take the losses on his personal tax returns.

[Basit Siddiqi]

@Nagesh Pulipati

Normally, you don't want to provide tax advice to your investors/clients. 
it gets a little messy if your suggestion/advice is incorrect.

You should then insist that they talk to their tax professional.

With that said, they may get a loss that would potentially get suspended especially if hes not actively participating in the partnership.