Offsetting Passive Partnership Income with Passive Schedule E Losses

[MikeB_CPA]

I posted this earlier but did not hear from anyone, so I am hoping someone has some experience they can share on this topic.

My client has several partnerships which have generated passive rental income.  He also has a rental property (Sch. E) which has generated accumulated passive rental losses.  I thought that the Sch. E passive loss were permitted as an offset up to the amount of passive income from the partnership, but I cannot figure out how to do it...or if I am even correct in my thinking.  Thoughts?

Thanks very much.

Mike

[sjrcpa · Accepted solution]

Your theory is correct. The software should do it for you. Look at Form 8582.

It is best not to ask more than once. You can always type a reply such as "bump" or "anyone" to move your question up the list if it has been awhile.

I think your original question got lost among all the unemployment, PTC, and due date in the letter questions.

[MikeB_CPA]

Thanks very much.  The software is not doing it for me, so that is what prompted the question.  I will need to look deeper into this to figure out what is happening.

Thanks again.

[qbteachmt]

I flagged your other ask of the same thing as duplicate for deletion. This is not Customer Support, but peers that volunteer to help answer. It helps not to keep starting the same topic as new. Thanks.

[MikeB_CPA]

The topic was repeated one time because no responses were received.  I am sorry if that has caused any problems for you or the other volunteers.

[qbteachmt]

You can always update the existing topic. Perhaps it needed a bit more info to make it more informational to those who read it and decided they couldn't answer as it stood, and everyone also is a bit busy right now. The easier it is to read and understand, the more likely someone will take the time.