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posted Oct 3, 2022 6:10:12 PM

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?

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.

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1 Best answer
Level 15
Oct 3, 2022 6:39:09 PM

Your stock gains are capital gains. 

 

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

1 Replies
Level 15
Oct 3, 2022 6:39:09 PM

Your stock gains are capital gains. 

 

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