Publicly Traded Partnerships (PTPs)

Your broker may invest in a PTP for you which are subject to the passive activity rules which can limit the deduction of losses. PTPs are even under more restrictive rules concerning the deductibility of losses. You can only deduct losses against future income from that specific PTP and not against other PTPs or other  passive income. If you sell the PTP in a taxable transaction, then you can deduct all suspended losses.