Passive activity loss from k1, if there is basis, can you take the loss? Or do you have to adjust it against Passive income. I am having a brain freeze, it is not a real estate activity.
Passive activity losses can be deducted against ordinary income only if your income is below a certain threshold. If your income is over $100K or so, passive losses will be disallowed, even if you have sufficient basis.
Form 8582 calculates the allowable portion of a passive loss.