Non-Portfolio Asset. According to the IRS:
"Portfolio income or loss (shown in boxes 5 through 9b and in box 11, code A) isn't subject to the passive activity limitations. Portfolio income includes income (not derived in the ordinary course of a trade or business) from interest, ordinary dividends, annuities or royalties, and gain or loss on the sale of property that produces such income or is held for investment."
So, if the ordinary business of your partnership//LLC is to purchase, rehab, and sell real estate, then the house you sold would be a Non-Portfolio Asset.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
