ronoringer
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12-06-2019
04:58 PM
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Best Answer Click here
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Level 11
12-06-2019
04:58 PM
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When the capital gain is from the sale of an asset used in a passive activity.
If the K-1 doesn't specify, and it's not obvious from other facts personally known to me, I treat capital gains as nonpassive. For all those dumb hedge fund K-1s with a million lines, it's nonpassive unless there's a footnote to the contrary.