I have a K1 from business #1 for a loss of $25k. I am a passive limited partner for business #1.
I have a K1 from business #2 for a gain of $6k, which is nonpassive income for which I actively participate. Why isn't the passive loss from business #1 offsetting my gain for business #2?
My Form 8582 shows the $25k loss from this year and the $2k from last year as $27k loss on line 4, however at the bottom of 8582 it shows $0 for "Total Losses allowed from all passive activities for 2020".
Am I not allowed to apply the loss from a passive business to nonpassive business?
If I'm not, how do I recoup the losses for business #1 shown on 8582?
Does the At Risk box in TurboTax have anything to do with it? I would love clarification on how At Risk plays into this situation.
