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I have a K-1 from an active partnership. I am a passive

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Hello. I have a K-1...
Hello. I have a K-1 from an active partnership. I am a passive partner. I have passive losses carried over from prior years from the partnership. For 2014 partnership has losses on Box 1, but interest income on line 5. Can this interest income be offset with the passive losses from prior years?
Submitted: 2 years ago.Category: Tax
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9/2/2015
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 2 years ago
PDtax
PDtax, Certified Public Accountant (CPA)
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Hi from just answer. I'm PDtax, and will assist.

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Tax Professional: PDtax, Certified Public Accountant (CPA) replied 2 years ago

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.

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