And...the concept of getting pass through losses is technically correct for LP, LLC and S corps. However, the IRS made it very difficult to actually realize it due to laws around what they term "startup costs". These costs are, by law, amortized for am incredibly long time, and at least in my experience, the majority of costs everyone has until the product is launched falls in this category. So while you/your partners may have spent a boatload of money trying to get your puppy of the ground, the pass through benefit is a whole different story. A tax accountant/lawyer can tell you what falls in this category and what doesn't. My counsel is to have them push the envelope as much as possible so you get at least some pass through loss for your personal return. The other thing to know is once the categories are set in place and the costs amortized versus expensed the returns following must also follow the same approach. Hence the need to push the limits as much as the law allows..and for which your accountant finds.

Amortization of startup cost  is so negatively impactful that I have one project where the only near term loss the partners can access  is to close the company down and claim all losses. Thank  you IRS...