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Rentals, passive losses, K-1 income and PTPs

SEE 1 Chapter 9 · IRS outline 2A11, 2A12, 2C5

Hank and Rose own a duplex and a lake cabin they rent part of the summer. Lily has a K-1 from her brother's restaurant partnership and units in an oil pipeline partnership her late father left her. All of it lands on Schedule E, and nearly all of it runs into the passive loss rules. This chapter gives you the order of operations Nadia uses: figure the income, place the losses, and then ask whether the losses can be used this year.

In this chapter

1. Rental real estate on Schedule E
2. Vacation homes and mixed personal and rental use
3. The passive activity rules
4. K-1 income from partnerships, S corporations and trusts
5. Publicly traded partnerships

This chapter has 5 lessons and 66 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Rental real estate and vacation homes
• passive activity rules and the $25,000 allowance
• real estate professionals
• K-1 items and basis
• publicly traded partnerships

Chapter 8: Self-employment: Schedules C, F and SE · Chapter 10: Foreign income and the foreign tax credit