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Business & farm
That statement ("However, the application of the passive loss limitations to tiered PTPs is not entirely clear....) is a legal disclaimer because the issuer really doesn't know how passive loss limitations might flow through and affect an individual investor's tax return - in the vast majority of cases, they won't.
Unless you have a significant investment in this partnership and there are significant passive losses in the lower tiers, this issue should not have a material effect on your return.
March 22, 2021
1:10 PM