No, sorry if I haven't been clear. Partnership will file 1065. Individuals will each receive K-1s. One of the three partners has his own business in addition to this and files a Sch C for his own business which is a disregarded entity. Other two partners (married couple) each have salaried jobs outside of the partnership. We all had an active participation in this venture. I did the bookkeeping, paid the bills, etc. and our partner pounded the nails and supervised the subcontractors.
I had read somewhere that losses were limited to $3,000 per year on investments, so wanting more clarification on whether or not this applied to us. I believe we are active and therefore, if it were income, it would be ordinary income, but since we have a loss, are we limited or is the entire loss to be taken in 2020?
