VVBB
Returning Member

Section 743(b) Allowed as Non-Passive Deduction?

Hi All,

 

Are there any limitations on marking section 743(b) negative adjustments as nonpassive? It is a negative deduction so would lower my taxes. The partnership did this specifically to offset capital gains with this deduction. However, Turbotax marks it as a passive deduction. I can mark it as non passive but not sure if the IRS allows for this. Your help would be much appreciated. Thanks!