PASSIVE LOSS IN K1

[gk]

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 · Accepted solution]

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

[gk]

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

[Accountant-Man]

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.