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I received a final k1 from a bankrupt MLP company. on line 1…

I received a final k1...
I received a final k1 from a bankrupt MLP company. on line 1 there was ordinary business income of $75,000 and line 11 there was other income of $120,000(cancellation of debt).. but on line 19 there was net section 1231 loss of 196,000. can I offset the 1231 loss of 196,000 vs ordinary income of 75,000 and 120,000(cancellation debt income)which would give me net loss of 1000. or net section 1231 loss can not be offset the either income. please advise.
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Answered in 4 minutes by:
3/16/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
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Hey! I'm Carter, I'm a CPA and can help you out.

The 1231 loss is ordinary, so it will offset the $75,000 and the $120,000 of income which are also ordinary.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
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