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@LaJolla I believe the Sched E is correct.  While you own the partnership its possible for passive losses to be released to Sched E (e.g., the partnership reports $100 in income, which would release $100 in suspended losses to Sched E).  In that case, that $100 would show up in the 'passive' column reflecting that they're just offsetting passive income elsewhere on the return.  But when you do a complete disposition, those losses get treated as non-passive meaning they can offset any income.  That's why they're appearing in the non-passive column.

 

Note that I'm not an expert on this, and there may be a tax attorney somewhere who'll argue that the way TT is handling it is incorrect and the program has a long-standing bug, but this is how I've always seen TT handle complete dispositions and the above logic makes sense to me.  Hope that helps.

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