General Partner in oil partnership.

Forum|Forum|4 years ago
March 28, 2022
1 reply
12 views

Client has K1 and is marked a General Partner. Does being a General Partner mean he has a "working interest in an oil" so he does not have to treat the loss as a passive loss?

ProSeries Basic

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Best answer by sjrcpa

A General Partnership interest means it is not passive.

I don't know if it means they have a working interest.

Generally these partnerships have pages have explanatory stuff.

Also watch future years. Frequently your client's interest will change to a limited partnership interest in a year or two.

sjrcpaAnswer

Level 15

A General Partnership interest means it is not passive.

I don't know if it means they have a working interest.

Generally these partnerships have pages have explanatory stuff.

Also watch future years. Frequently your client's interest will change to a limited partnership interest in a year or two.

The more I know the more I don’t know.

T

TomTax51Author

Level 3

Thanks for your insight .K1 client gave me didn't have any explanation in regards to General partner status. Couldn't find any straight answers in IRS publications that a General partner income/loss was considered non passive.

sjrcpa

Level 15

You're welcome.

"K1 client gave me didn't have any explanation in regards to General partner status" That doesn't mean they don't have it. 😀

The more I know the more I don’t know.

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