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Does K-1 passive loss carryover include rental losses?

My K-1 form lists my main investment (LLC A I'll call it) and several passthrough companies that it owns (LLC B, LLC C, etc.). I'm filling out the section about passive activity losses. I don't know if rental income counts when calculating passive activity loss.

 

For example, last year, LLC B had -12 ordinary income loss and +336 for rental income. Does that count as a passive loss to carryover?

 

LLC C had -23 for ordinary income loss and +15 for rental income. Does that count as -23 for passive loss carryover, or -8?

 

Thanks!

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1 Reply
M-MTax
Level 11

Does K-1 passive loss carryover include rental losses?

Unless you materially participate in the LLC, the losses are also passive losses and suspended.

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