[wakefern58]

Could someone clarify something for me with regards to “passive income”. I can’t figure this out!

If a “limited partner” who does not materially participate in the partnership receives capital gain income or portfolio income on his K-1 from the partnership, is this type of capital and portfolio income considered “passive” because he is a limited partner? OR would only ordinary income from the partnership be considered passive?

[Julia]

How do u treat a complete corp liquidation if land distributed has liability ?
Do u ignore it and only compare FMV and adj basis – and recognize a gain or loss?

[Julia]

It is my understanding: anything related to “passive” is treated as passive.
The figures are broken up differently on the k1for individuals who would are not limited.

https://www.irs.gov/instructions/i1065bsk/ch01.html

[Author]

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