Take a look at Section A of each of your K-1 Partner worksheets. Section 1231 passive losses can be recognized IF there is other income being reported for that PTP.
So if you sold a portion of a PTP and received Ordinary Gain, that would trigger some of the 1231 losses to be released.
Alternatively, something like Box 11 Income (e.g., one of my PTPs reported a capital gain that was not portfolio income) would also trigger some of this to be released.
If you look specifically at each worksheet, you should be able to see exactly which one(s) contributed the 1231 loss to 4707, and what offsetting income allowed the recognition.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
