Business & farm

Applying the 365 against income that isn't from that PTP is an error for a PTP.  Here's language directly off virtually all my K-1's (it could be on all of them -- I just haven't checked):  "The tax law limits the recognition of passive activity losses from a publicly traded limited partnership to the amount of passive activity income from the SAME partnership. Net passive activity income from a publicly traded partnership cannot be used to offset the net passive activity losses from
other sources including other publicly traded partnerships."  That rule applies until you've done a complete disposition, at which time you can recognize all losses.

And "yes", you want to track all the carryover losses.  That's what will keep you from overpaying your taxes for the PTP when you do the final disposition / accounting.