Report nonpassive and passive income from publicly traded partnerships (PTPs)
Per the IRS Form 8582 Instructions:
- If you have an overall loss, the losses are allowed only to the extent of the income. The excess loss transfers forward to use in a future year if you have income to offset it. Report as a passive loss on Schedule E.
- If you mark the activity as disposed, the Schedule E shows it as passive.
- Don't report passive income, gains, or losses from a PTP on Form 8582.
- If you have an overall gain from the PTP activity, the net gain portion (total gain minus total losses) is nonpassive income.
To denote a Schedule K-1 as received from a PTP in UltraTax CS, select
Code 4
as the Type of entity
on the K1 screen in the K1 1065, 1120S folder.
