Publicly Traded Partnerships(PTPs)

These are partnerships that are  traded on a securities market. Passive losses from a PTP can only be used against passive income from the same PTP so they don't fall under the sames rules for deducting passive losses on form 8582. However when you sell your  partnership interest you can then deduct suspended passive losses if you have basis. Investing in PTPs usually results in a very complicated K-1 that may increase your tax preparation fees.