2005 1065 K-1 Line 3
From TaxAlmanac
The amount in box 3 is a passive activity amount for all partners. If the partnership had more than one rental activity, it will attach a statement that will identify the amount of income or loss from each activity. Report the income or loss as follows.
1. If box 3 is a loss, follow the Instructions for Form 8582 to figure how much of the loss can be reported on Schedule E, line 28, column (f). However, if the box in item D is checked, report the loss following the rules for Publicly traded partnerships on page 4. 2. If income is reported on box 3, report the income on Schedule E (Form 1040), line 28, column (g). However, if the box in item D is checked, report the income following the rules for Publicly traded partnerships on page 4.
