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Level 2

Question

LLC Rental loss K1

Forum|Forum|5 years ago
March 15, 2021
1 reply
0 views

I have a loss reported on a K1 from a rental LLC I am member of. The LLC is a partnership. TurboTax is suspending the loss for 2020. I can only offset this loss again other passive income?

Level 2

Internal Revenue Code Section 469 governs losses from "passive activities." Rental real estate is a passive activity. Generally, passive losses may be offset only against passive income. There are exceptions for real estate professionals and another allowance of up to $25,000 in losses from activities in which you "actively" participate. That $25,000 amount phases out if Adjusted Gross Income ("AGI") exceeds $100,000. Good luck.

Level 2

Would income from RSU stock sale also be considered passive and offset any passive losses from my rental property?

Level 10

No, losses from the sale of stock are not considered passive losses.