sissa51
been doing a lot of research on this problem. just thought someone might give me there expert thoughts.
i worked as a salesperson for a sole proprietor that made and sold beef jerky. after a year or so he ask me if i wanted to get into the jerky business. he had a good product and he needed some help with money and marketing of his product so i decided to make an investment into the company. the company has shown a loss every year and will continue to do so. after about 3 months he wanted me to give him some more money and i declined until i saw some profit from my investment. after i declined, he quick having anything to do with me. i did not materially participate in the business cause i didnt work 500 hours a years. is this a passive activity loss or can i take the deduction another way? i know you cant take the passive activity loss unless you have some passive activity gain. thanks a lot.
i worked as a salesperson for a sole proprietor that made and sold beef jerky. after a year or so he ask me if i wanted to get into the jerky business. he had a good product and he needed some help with money and marketing of his product so i decided to make an investment into the company. the company has shown a loss every year and will continue to do so. after about 3 months he wanted me to give him some more money and i declined until i saw some profit from my investment. after i declined, he quick having anything to do with me. i did not materially participate in the business cause i didnt work 500 hours a years. is this a passive activity loss or can i take the deduction another way? i know you cant take the passive activity loss unless you have some passive activity gain. thanks a lot.