I worked for an LLC last year that didn't generate any revenue. We took investments in exchange for equity, and the total loss amounts to about $10k for me and my partner each. We didn't put any cash in, but used each of our cars and computers, for a total fair market value of $3k each.
I'm filing my taxes with TurboTax and if I check the Schedule K-1 box that says "All of my investment in this activity is at risk", I get a hike in the federal refund amount of almost $2k. But I'm not clear whether I qualify, given that I didn't have a cash or loan investment.
Should I check that box or not? And what amount should I enter in Box
14-A, Net Earnings (Loss) From Self-Employment?