Why is a PTP loss not on Form 8582?
Software reference · Written guide Content date 1 min read
Form 8582, Passive Activity Loss Limitations, is used to calculate the amount of any passive activity loss that a taxpayer can take each year, however passive income, gains, and losses from a publicly traded partnership (PTP) are not reported on Form 8582.
The rules for passive income, loss, deductions, and credits from a PTP are applied separately from other passive activities. Passive losses from a PTP can only offset passive income from the same PTP. The taxpayer needs to keep track of suspended PTP losses to ensure they are accounted for in future years.
Schedule K-1 (Form 1065) from a PTP will be marked as such in Box D under Part I - Information About the Partnership.
Additional Information: