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

[Bird1]

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?????

[Bird1]

Partnership is not publicly traded

[Bird1]

Yes it is considered passive

[TaxGuyBill]

How is the Partnership passive?  Is it rental income?  Something else?  Give as much detail as possible.

[Bird1]

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

[TaxGuyBill]

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)?

[Bird1]

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-

[TaxGuyBill]

You seem to have not answered either of my last questions.

[Bird1]

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?

[TaxGuyBill]

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?

[Bird1]

No self rental -No personal use-Property type 5 Land-Bottom of schedule E -Ownership=Taxpayer
At risk Status=All-Passive Status+ NONPASSIVE?????

[rbynaker]

Just chiming in randomly.  What happens if you change it from Land to something else?  There are some weird rules regarding rental of land.

[TaxGuyBill]

"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.

[sjrcpa]

Bingo

[Bird1]

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

[sjrcpa]

Glad you figured it out.

[Bird1]

WITH A LOT OF HELP -THANKS

[sjrcpa · Accepted solution]

The rental is considered passive in the software?

[sjrcpa]

Is the partnership a publicly traded partnership?