Folks,
My LLC has rental properties. I keep my rental income in money market funds and this generates income (reported on 1099 INT). I also have some passive losses and I use my rental income to write down the passive losses. I was wondering if the interest income is also considered passive income and can be used to write down the passive losses?
Thanks.
This is not possible. Interest income goes on a different box on K-1 and winds up on Schedule B. Rental losses of your LLC are on box 1 of the K-1 and wind up on your personal Schedule E. They don't cancel each other out.
Interest is PORTFOLIO income, NOT passive income - sorry, no offset.
Gene E. Utterback, EA, RFC, ABA
Have something to add? Share your thoughts — no account required.
Ask the community — no account required