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limited partnership income and deductions

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tjknd

Junior Member
What is the name of your state? PA
Schedule K-1 for partner's share of limitied partnership reports in Item 1, ordinary income, $3,843. Under 13V, separately stated depreciation of $783, amortization of $6,096, and separately stated amortizaiton of $26. Can these deductions be taken against ordinary income?
 


abezon

Senior Member
Any passive activity expenses that exceed passive activity income may be carried forward until you either have passive income to use them against, or until you sell the passive activity. For example, if you have to LLC/LLP's & A runs at a profit of $1,000 while B runs at a loss of $1,500, your net passive activity income would be $0, & you would have a passive activity loss carryforward on activity B of $500. Next year, if both activities run at a profit, you'll use some or all of the $500 to reduce that profit.

You need to track each activity's passive losses separately. Use Form 8582. You also need to track the AMT passive activity losses. If you aren't using a professional tax preparer, I recommend you start a summary sheet & update it every year.
 

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