Personal Royalty income not being offset by LLC rental loss

[bigragooch]

On my Schedule E, Part 1, I have income on line 24 from royalties (mineral rights I own on several properties).  On line 32 of Part 2, of Sch. E, I am showing $0 because Form 8582 says I have no passive losses allowed.  I actually had large losses under the LLC I own with two partners that has a rental property.  However, Form 8582 eliminates these large losses because my income is greater than $150k.

Shouldn't I be able to offset my royalty income with my real estate loss even though the former is personally owned and the latter is from an LLC?  If I personally owned the rental property, it seems clear that the two would offset in Part 1 of Schedule E.  If I can offset these two between person and LLC, how do I do it?

[Mike9241]

Per the IRS, net income or loss from royalty and lease payments of natural resources is not considered passive income. rental losses are. so one can not offset the other

[bigragooch]

Thanks!  That is very helpful.  Since the royalties were showing up on Schedule E, I assumed they were considered passive income.