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Ordinary Loss Limitation under Section 461(l) , Trading of Financial Instruments

  • 1.  Ordinary Loss Limitation under Section 461(l) , Trading of Financial Instruments

    Posted 09-29-2019 13:37

    K-1 shows significant gain from contracts and straddles, with Ordinary Business Losses reflected on Line 1.  Losses are limited by section 461(l).  Partnership "is in the business of trading financial instruments" under code section 1411(c)(2).

     

    Can the gains from section 1256, contracts and straddles, be aggregated against the Ordinary Business Losses to avoid the 461(l) limitation?  Any input would be appreciated.  

    Beautiful day here in Tarrytown.  Enjoy!

     

    Thanks

     

     

    Keith Boyer   Certified Public Accountant

     

        

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