[n.ACMA]

please comment if both the statements r correct. if a partner actively participates in the affairs of a partnership and the partnership declares a gain, on his personal return, the partner would show an ordinary gain? and if the partner doesn’t participate then this would be a passive gain, deductible against future losses?

[h0wdyus]

Partnership ORDINARY income goes to Sched K and then K1 then to 1040 Schedule E first and then goes to 1040 on line 17.

Since there are 3 types of partnership incomes i.e 1) ordinary 2) Portfolio and 3) Passive Income. The go onto Sched K and K1 on separate lines .. i.e ordinary income ; rental income and interest income. Now all of these are shown on Shche E of the 1040. and from there they all do to line 17 on 1040. So I think it is just one figure shown on 1040 coming form Sched E ( supplemental income).

This is what I could think of.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Author]

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