I received a k-1 from a real estate fund with a Box 1 -2,000 ordinary business income loss. Principal is at risk (checked), but why is passive loss allowed 0 on return?

[sthakker_11030]

I am not sure why I should not be able to take the loss.  I also have plenty of stock gains that I should be able to offset this loss against.

[Anonymous_ · Accepted solution]

Your stock gains are capital gains. 

You cannot use a passive loss (your real estate fund) to offset capital gain.