Ben is a limited partner in three different partnerships. Two of the partnerships lost money and one was profitable: Partnership A: loss of $2,000, Partnership B: profit of $3,300, Partnership C: loss of $4,100. What is the amount of deductible loss on Ben’s individual tax return as a passive loss?investments?

Answer 0

My question is aren't Passive activity gains and losses netted together?

P.S: This question is from CPAreviewforfree

Take a look at this for example:

Horace Fife is a 20 percent partner of a local convenience store although he does not actively participate in its operations. This year he was allocated a loss from this business of $24,000. He also owns shares of several publicly held companies and received dividends this year of $17,000. Fife owns two rental houses. During the year, their revenues totaled to $40,000 and operating expenses were $30,000. Finally, Fife held a share of a limited partnership and reported income this year of $4,000 as a result of that ownership. What is the increase in Fife's adjusted gross income as a result of all these investments?

Ans:17000.

So here Profit and losses from PAL are netted. How is this different from the first question?