Any income-limits on PASSIVE income offset by PASSIVE loss?

[GJS1981]

Hello, 

I have passive income from a couple of sources (e.g., patent royalty, long-term stock sales) and passive income from a rental real estate property. My understanding was that since both these are passive, the latter could offset the former. Are there any income limits for this kind of passive loss-to-passive income offset?

NOTE: I am NOT talking about using the passive losses to offset NON-passive income. I understand there is an income limit and a phaseout for that situation (starting with the $25000 special allowance) - I am NOT talking about that, but rather just passive to passive.

Thanks in advance.

[Vanessa A]

The sale of stock held for more than a year is a long term capital gains, not a passive activity.  You cannot use passive losses to offset capital gains. As for other passive income types, it will depend on what type of passive income and losses you have. 

[GJS1981]

Hi @Vanessa A , 

Thanks for your response! Makes sense that the capital gains from stock are separately handled. Any comments on the other passive incomes, specifically:

a. patent royalty (I got a 1099-Misc), 

b. interest income from bank accounts (1099-INT), and

c. dividends (1099-DIV) from stocks that I have not sold 

The patent royalty is a big chunk of passive income, so any comment on that (#a above) would be particularly helpful.

Thanks for your help!

Best regards,

-Gaurav