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Roy,

I don't get over here much to the web boards, but Jack suggested I post this question over here.

I had a passive investment in a limited partnership. During the period of my investment, the partnership threw off operating and asset disposition losses which were disallowed and carried forward.

My interest in the partnership was sold in 1998. This "released" the accumulated losses which flowed through Form 4797 and Schedule E to the front of my 1040.

It now appears that I may have an NOL (I have negative taxable income). My question is --- are these losses considered "business or trade" losses for purposes of determining an NOL even though I did not ever materially participate in the business? Or are they considered personal/investment in nature?

If "business", then I have an NOL, if not, then I don't.

Thanks in advance.

Ira Smilovitz
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