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Level 2
February 12, 2022
Question

1041 land rent

  • February 12, 2022
  • 1 reply
  • 3 views

I have some land rent on a 1041 return with the profits flowing to box 5, portfolio income, on the K-1. It should flow to box 7, net rental real estate income.

I tried a few other types of rentals, like single-family home, and no matter what I try nothing from the Sch E is flowing to box 7. 

Am I missing something here?

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1 reply

sjrcpa
Level 15
February 12, 2022

Yes. Land is deemed to be held for investment.

The more I know the more I don’t know.