Can I write off personal stock investment capital losses against K-1 passive distribution gains

Forum|Forum|3 years ago
December 19, 2022
1 reply
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Hello... I currently have many stock investments in losses and want to find my options to use these losses to reduce my tax liability against my different incomes in 2022.

1. W-2 income = Cannot deduct stock losses, max is 3k per year

2. 1099-INT income = Cannot deduct stock losses, max is 3k per year
3. 1099-DIV, Dividend income = ?

4. K-1 Distributions = ? (I do have some profit from a passive apartment investment, as they closed that property and going to distribute those gains)

Please let me know if I have any other options to harvest losses this year.

Thanks and I appreciate your help.

Mike9241

Level 15

1 thru 3 no. 4 - to the extent the k-1 reports capital gains your stock losses can be used to offset. it will not match the amount distributed but be reported on one of these lines of the k-1

8,9a, 11(i)(3) or (4)

capital gains/ losses are a specific category and only items (it capital gains) properly reported on schedule D can be used to offset capital losses. in addition, at most $3,000 of net capital losses can be used to offset other income any excess becomes a carryover.

Mike9241