Is your business a partnership, an LLC with multipel owners, or an S-Corp?
Which line of the K-1 are you showing the loss on?
And if it is an LLC, and you are talking about a K-1, then I assume you are partners.
There are different kinds of losses with the business. operating losses and capital losses for example.
Normally how much you have invested is not an issue for losses, during the operation of the business,but come in to play when the business is disposed of, or when one of the partners leave the business.
Because of all of that, I need to know what line of the K-1 are you showing a loss on, and are you disposing of the business?
The investment money is your equity in the business and your cost basis. You do not show investment money as part of receipts. So what you invested is not factored into the formula for operating losses.
If you do the form 1065 correctly, the numbers flow to the K1 appropriately. The K-1 should show each partners EQUAL share of operating loss, expenses, etc, unless you have a partner ship agreement based no investment percentage.
IF your partnership agreement shows you should be dividing in proportion of your contributions or investments, then that division of net operating losses and expenses can be shown.
I am using this form: http://www.irs.gov/pub/irs-pdf/f1065sk1.pdf If you are using a different form let me know:
The investment portion goes on this form in section L.