[kdawg22]

I have a question on the partial disposition of a Publicly Traded Partnership. I know the instructions say that you can’t use prior year unhallowed losses on partial disposition (see below.) But can you use the current year loss reported on the K-1 to offset the ordinary gain adjustment from the K-1?

This is straight from Form 8582 Passive Activity Loss Limitation instructions: A disposition of less than substantially all of an entire interest doesn’t trigger the allowance of prior year unallowed losses.