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Passive activity and Non passive activity on Schedule E
I have an S corporation taxpayer whose business is an importing business. Last year, the taxpayer purchased a building as a rental property. Now, as a 100% shareholder of the business, my client needs to report his normal income (S corporation importing business) as nonpassive income and rental property income as passive income on schedule E page 2. When I click "not a passive activity" on 1040 screen 20 S corporation information, every income including rental income is reported as nonpassive income. Is there any way I can report rental income as passive income and importing business income as nonpassive income on schedule E page 2? Thank you
