When to use net long-term capital gian versus 9a passive long-term capital gain

[PhoebeRoberts · Accepted solution]

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.