DMarkM1
Employee Tax Expert

Business & farm

Yes.  If you did not materially participate in the activity or it is a rental activity and you are not a real estate professional then it is a passive activity and the gain or loss is passive and goes to form 8582 and will be combined with all other passive activities.  Here are the partners instructions for form K1 for reference.   See the Passive Activity Limitation section, "Effect of determination" paragraph.  

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