I own an LLC with 2 others. Our LLC's only asset are shares of stock in a small corporation that was dissolved (worthless) in 2011. This corporation was converted from a separate LLC four years ago, and 2008 was the last time my LLC filed a tax return (or issued a K-1). For the tax returns we filed for 2008 and prior years, our 1065 returns reported a small amount of business deductions and ordinary losses that passed through from the K-1 we received from the separate LLC. The losses were divided amongst the members on the K-1's our LLC issued. What returns do our LLC need to file, so our members can report the loss on dissolved shares do stock? Can our members deduct the full amount of their losses on their own 2011 returns?