Hello,
I am part of a limited liability partnership (LLP) and my K-1 is showing a loss in box 1. I do not materially participate in the company. This company is not related to the real estate industry. My understanding is that this is a passive loss. I do not have any other passive income. I believe that I cannot deduct this loss on my federal income tax, and that I must carry the loss forward. Turbo tax is treating this as I expected (not claiming a loss, and carrying it forward).
However, I was told by someone that "as a Limited Liability Member, I am allowed to deduct losses up to the extent of your basis in the LLP. Any unused losses can be carried forward to future years. And, that the limit on passive activity losses I am referring to is more aimed at real estate activities."
Can someone please help me make sense of this? Thank you!
