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Level 2
posted Sep 25, 2022 5:34:24 PM

Can Rental income, losses offset MLP or PTP stock income, losses

I understand Rental income/expenses being passive cannot offset normal stock gain/loss but Can Rental income, losses offset MLP or PTP stock income, losses (since that is passive too)?

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1 Best answer
Level 15
Sep 25, 2022 6:35:26 PM

See https://www.thetaxadviser.com/issues/2019/apr/publicly-traded-partnerships-tax-treatment-investors.html

 

Generally, passive losses can be used to offset passive income but PTPs receive different treatment.

2 Replies
Level 15
Sep 25, 2022 6:35:26 PM

See https://www.thetaxadviser.com/issues/2019/apr/publicly-traded-partnerships-tax-treatment-investors.html

 

Generally, passive losses can be used to offset passive income but PTPs receive different treatment.

Level 15
Sep 25, 2022 6:59:59 PM

MLP/PTP as @Anonymous_ stated receives special tax treatment. each one stands on its own. a loss on one can only be used to offset future income from the same entity unless there is full disposal. upon full disposal, any unused loss is allowed but becomes nonpassive.  in the meanwhile, income from one is taxable unless it is offset by prior years' loss carryforward.