scirelli04 wrote the following post on 6/22/2003 3:37:00 PM
Your friend, Mike, is the sole owner of Community rental Services, a limited liability company that manages numberous apartment complexes and other rental units. As the sole owner of this LLC, Mike reports all of its income on his individual income tax return; the income regularly approaches $200,000 annually. Community Rental Services manages many independently owned facilities as well as several units owned by partnerships in which Mike holds a limited partnership interest. The fees Community Rental Charges the real estate partnerships for Mike's work are
Lake Road Partnership: $2000
Charles Street Partnership: $1500
Peyton Drive Partnership: $3000
Each of there partnerships has consistently generated tax losses that generally are subject to the passive loss limitations. Mike's share of the losses of each partnership is 80%. Is he able to offset any of the partnership losses against the income from his management company on his income tax return?
Thanks for your help!