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Level 1
posted Jun 3, 2019 12:36:50 PM

How do I enter 1099-Int interest as Passive Interest. This interest was earned from Peer to Peer Lending.

I have 1099-Int income that is Passive Income (from a Peer-to-Peer lending investment.  I also have Passive Losses in my K-1 from a different investment.  How do I enter the Passive Interest income so it will get offset by the Passive Losses?

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1 Best answer
Expert Alumni
Jun 3, 2019 12:36:51 PM

Interest is considered by the IRS as nonpassive income and cannot be used to offset passive losses.

Please read this IRS document:

https://www.irs.gov/businesses/small-businesses-self-employed/passive-activity-losses-real-estate-tax-tips

1 Replies
Expert Alumni
Jun 3, 2019 12:36:51 PM

Interest is considered by the IRS as nonpassive income and cannot be used to offset passive losses.

Please read this IRS document:

https://www.irs.gov/businesses/small-businesses-self-employed/passive-activity-losses-real-estate-tax-tips