Have a Tax Question? Ask a Tax Expert
Hi from just answer. I'm PDtax, and will assist.
Your interest income from the partnership is portfolio income, and can not be offset by prior or current year passive losses from the same partnership. Only passive income qualifies. IRC 469 (e) (1).
This is a common area for IRS scrutiny. They actively guide their auditors to look for this issue.
Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.