Passive Activity Loss Rules for Flow-Through Entities
• Passive loss limitations are applied at the 1040 level . Schedule K-1 • Box 1 has more than one business activity, an attachment to K -1 is required • Rental activities must be separately stated on K-1 in Box 2 or 3 • If more than one rental activity, an attachment to K -1 is required . Schedule K-1 Activities need to be separated ... ................
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