General Partner in oil partnership.

[TomTax51]

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?

[sjrcpa · Accepted solution]

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.

[TomTax51]

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]

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. 😀