Last tax season

[JG EA]

about this time I asked questions about a TP with a K-1 from an LLC. TP is a limited partner. I assumed passive activity and was surprised that the 179 deduction was suspended.

I got some great info from Bees at the time. Now this year I have the same situation. Although I did conclude passive here's the thing:

TP works for the same company that has the LLC. Full time. Goes to meetings of the LLC. But certainly no 500 hours outside of his full time job. He is not an employee of the LLC. The LLC is separate. I still think passive, but could the fact he works for the company that owns the LLC make a difference?

[JG EA]

Changed post to ask again.

TP works for the same company that has the LLC. Full time. Goes to meetings of the LLC. But certainly no 500 hours outside of his full time job. He is not an employee of the LLC. The LLC is separate. I still think passive, but could the fact he works for the company that owns the LLC make a difference?

In other words he works full time for a company. That company has 3 partnerships and client is a limited partner in each.

In the instructions it say that a limited partner must put in 500 hours (or have been active in previous years).

My question is does his job qualify? I am inclined to think not but would love to hear someone else comment.

[veritas]

Limited partner?

In an LLC? I don't think so. If it is an LLC he is a member of the LLC.

[JG EA]

Limited vs Member

OK Member then.

But my question is does his active participation in his job (W-2 from the company) have anything to do with his material participation. Going to board meetings does not constitute 500 hours. So, is just going to meetings for the LLC enough to have material participation? It doen't seem so, but I am confused about this.