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Income Tax Planning
Chapter 14: Passive Activity Rules/PASSIVE ACTIVITY LOSS RULES: PUBLICLY TRADED
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Chapter 14: Passive Activity Rules

PASSIVE ACTIVITY LOSS RULES: PUBLICLY TRADED

01.Core Concepts

PARTNERSHIP (PTP) LOSSES • Each PTP is segregated from all other passive investments and from all other PTPs. • A loss from one PTP cannot offset income from another PTP or passive investment. • A loss from another passive investment or PTP cannot offset the income from a PTP. • Losses are suspended until: • The PTP generates income, or • The PTP is disposed of