As we covered in Weeks 2 and 3, the passive loss limitation rules impose real limitations on the
ability of owners of certain types of ventures to take losses from those ventures and use them
to reduce other income. That hardly means, however, that people don’t try. One such area
often involves various oil and gas ventures. Often operated as publicly traded partnerships,
sophisticated investors often purchase limited partnership interests in these ventures. They
are, however, subject to a particularlyrestrictive set of passive loss limitation rules. Locate at
least three such oil and gas publicly traded partnerships on the web that are marketed to new
investors. Describe the benefits that the promoters of each of these partnerships claim will
result from the investments and describe the disclaimers, if any, that they provide detailing
what limitations may be placed on the losses.
NOTE: You must either (1) submit complete citations to these online resources so that your
instructor may find these studies online or (2) submit complete copies of these online
resources with your submission. Failure to do so will result in a zero for the assignment.
