My wife and I own an interest in a partnership. She participates actively, but I do not. Can we have differing interests even

Asked over 1 year ago - San Diego, CA

though our K-1's will end up on the same tax return? The business shows a loss, so I think her loss is ordinary for offset against her ordinary other income. But I only have a money interest in the partnership and will show it as passive. According to my studying, if one spouse participates then the other spouse qualifies, even if the other spouse did not have any interest in the activity (but I do have an interest).

Attorney answers (1)

  1. Pamela Koslyn

    Contributor Level 20

    Answered . Yes, you can differing interests. And with CA's community property law each of you owns 1/2 of the other's interest anyway.

    Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to... more

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