Answered: PASSIVE LOSS IN K1

gk · ‎02-10-2021

Hi,

Client has a passive k1 loss(rental) of $50000 this year. How can i offset passive loss with Non passive income. SchE L 28 shows 0 under Non passive Loss K-1. Married couple their income is $350k. Pls advise

sjrcpa · ‎02-10-2021

Passive losses can only be used against passive income, unless the passive activity is disposed of in a taxable transaction.

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

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sjrcpa · ‎02-10-2021

Passive losses can only be used against passive income, unless the passive activity is disposed of in a taxable transaction.

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

gk · ‎02-10-2021

If the client has Material participation i can use that for offset Nonpassive loss, right?

Accountant-Man · ‎02-10-2021

No. You would need Real estate professional to use loss against other income in your income bracket.

Try reading some of the rules; you seem to need more experience in this area.

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PASSIVE LOSS IN K1

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