LLC Loss - How to take the loss? One year or spread out on taxes?

[Patty Puckett]

Our LLC bought a Multifamily zoned property to build a subdivision. We spent about $100,000 with all the costs to get to the PUD Tentative map stage. We decided because of health issues not to build and to sell. Then the market dropped. We have had on the market for 8 years and are now taking a loss on everything about $40,000 on the land and $100,000 on the costs to get it to the tentative map stage. How do we write off the loss? We didn't take the loss through the years for the original cost, just the operating cost like taxes and utilities. Our LLC name has Properties in it, no other business.

One CPA says we can take the loss in one year.  The other CPA says we have to spread it $3,000 a year until we reach the loss total or against any capital gains.  Which is correct? 

Thanks Patty