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Level 1
May 3, 2026
Question

K1's

  • May 3, 2026
  • 1 reply
  • 2 views

Can K1 looses from a publicly traded MLP, be used to offset capital gains from a rental house sale

    1 reply

    M-MTax
    Level 15
    May 3, 2026

    @eileenfinke wrote:

    Can K1 looses [sic] from a publicly traded MLP, be used to offset capital gains from a rental house sale


    Capital gains are treated as nonpassive income whereas losses from a limited partnership are passive losses.

     

    Passive losses can generally only be used to offset passive income. Thus, the answer is typically "No".