A Partnership of 8 members each invested $20k into a medical device in development. I'm preparing their 1065 Partnership return. The only activity was to transfer $160k from the partnership to the company making said medical device. This is not an expense to the partners but a balance sheet item. The partners are thinking this should show as a loss on their K-1s. I explained this isn't a loss but an investment. Before I reiterate my stance with them is there anything I am not seeing or am missing?  Thanks in advance.