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Returning Member
posted Apr 14, 2024 10:41:42 PM

1099-S and K1 rental income loss

Hi, I sold an investment home with some gain  10K. I have some K1 (1065) investment in real estate with rental loss 10K. Can this be offset to net 0? or can't

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1 Replies
Expert Alumni
Apr 22, 2024 12:02:16 PM

The gain from the sale of an investment would be capital gain on Schedule D (Form 1040 Line 7). The loss from a partnership would be a passive loss on Schedule E (Form 1040 Line 8). While the two types of income would not directly offset each other, they may combine to lower your taxable income if you're able to claim the passive loss.