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Partners who materially participate in the business affairs of a partnership are not limited by the passive activity loss rules of Section 469 which means losses (on their K-1s) can be deducted essentially without limitation (to the extent of basis).
However, limited partners rarely materially participate in partnerships (if they do, they're typically considered to be general partners).
The information at the link below can be used to determine whether or not you materially participated.
https://www.irs.gov/publications/p925#en_US_2023_publink1000104582
you have to meet one of seven IRS rules to be consideered materially participating
Let’s talk about the material participation standards you need to meet to qualify for. According to the IRS, a trade or business is considered a passive activity unless the taxpayer materially participates. You could describe your activity as active participation in the operation of a trade or business activity by meeting one of seven following material participation tests:
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