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
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.