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Can a passive loss from a partnership offset a passive gain on individual return?

Bird1
Level 2

Taxpayer has a rental loss from Partnership K-1 and gain from rentals on front of schedule E. The K-1 loss comes forward as -0- and the profit flows to 1040 worksheet???  Is this right?????

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sjrcpa
Level 15

The rental is considered passive in the software?

The more I know, the more I don't know.

View solution in original post

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18 Comments 18
Bird1
Level 2
Partnership is not publicly traded
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Bird1
Level 2
Yes it is considered passive
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TaxGuyBill
Level 15
How is the Partnership passive?  Is it rental income?  Something else?  Give as much detail as possible.
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Bird1
Level 2
Partnership owns one piece of rental property- Partner has other rental property that he own 100% interest in-the properties that he owns individually have a profit -the rental inside the partnership is  a loss
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TaxGuyBill
Level 15
Is the partnership rental loss in Box 2 of the K-1?

For the gain from page 1 of Schedule E, is it somehow marked as non-passive (such as self-rental, land, or Box "G" on the rental worksheet is checked)?
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Bird1
Level 2
Front of schedule E has two properties-both have a positive net income-partnership has a loss from single property-loss allowed per k-1 is -0-
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TaxGuyBill
Level 15
You seem to have not answered either of my last questions.
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Bird1
Level 2
Partnership income is from rental property-Rental loss in on line 2-Box G is not checked-I know I've got something crazy checked-just can't figure it out-Where would you mark self -rental?
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TaxGuyBill
Level 15
Self Rental (or land) is selected near they top where you choose the "property type".

Did you enter any personal days?

Is the loss from the Partnership showing up on Form 8582?
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Bird1
Level 2
No self rental -No personal use-Property type 5 Land-Bottom of schedule E -Ownership=Taxpayer
At risk Status=All-Passive Status+ NONPASSIVE?????
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rbynaker
Level 13
Just chiming in randomly.  What happens if you change it from Land to something else?  There are some weird rules regarding rental of land.
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TaxGuyBill
Level 15
"Property type 5 Land"

Rental of land is not passive.  Therefore the passive losses from the K-1 can't offset the non-passive gain from the land.
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sjrcpa
Level 15
Bingo
The more I know, the more I don't know.
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Bird1
Level 2
Thanks for everyone's help- Individual has two pieces of property one piece is Farmland  The other piece was an office building-I had marked them both land-Thanks again
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sjrcpa
Level 15
Glad you figured it out.
The more I know, the more I don't know.
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Bird1
Level 2
WITH A LOT OF HELP -THANKS
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sjrcpa
Level 15

The rental is considered passive in the software?

The more I know, the more I don't know.
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sjrcpa
Level 15

Is the partnership a publicly traded partnership?

The more I know, the more I don't know.
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