Question

Received a schedule K-1 form 1040. It has amounts in box 11 only. Beneficiary credit for property sold at a loss. Is this considered passive loss?

Forum|Forum|5 years ago
February 23, 2021
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TurboTax Premier Online

From what you described, this is probably not a passive loss. Sales of property typically generate capital gains or losses.

Passive losses are normally associated with income or loss from rental activities and investment in businesses in which you don't materially participate. The sale of property is normally a capital transaction, like investment income from the sale of stocks, bonds and investment property.

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