Wife is general partner, husband limited partner. Can limited partner offset partnership income against jointly owned rental's passive losses on joint personal return?

[PhoebeRoberts · Accepted solution]

I think your question is this: Wife and husband co-own a profitable limited partnership, in which which the wife is a general partner and the husband a limited partner. They also have a jointly owned rental property, which has losses. Is the husband's income from the LP passive, such that it would free up the rental losses?

If that's your question, the answer is no. The husband is not considered passive in the LP, due to the wife's active participation.