Agree with
@nexchap.
More stringent passive activity income and loss restrictions apply to a PTP that is exempt from corporate tax. Each PTP is viewed on a stand-alone basis for applying the passive activity loss rules under IRC Sec. 469(k). Passive activity loss from a PTP, including carryforwards, can be offset only against income or gain from that specific PTP. Losses are not allowed to offset passive income from other sources. Likewise, passive income from a PTP can be offset only by passive losses from the same entity.
Based on your facts above, this PTP should net to zero for 2017 as the income should be offset by previous carryover losses.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
