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Level 2
April 11, 2021
Question

S Corp S/N/B passive activity

  • April 11, 2021
  • 1 reply
  • 8 views

Califoria S Corp is ACTIVE, not passive, but LaCerte treats as PAL.  Screen 20.2 checks boxes "not a passive activity" and "Real Estate Professional", but the loss still appears on the Form 3801 Worksheets.

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1 reply

PhoebeRoberts
Intuit Community Champion
April 12, 2021

California doesn't conform to Real Estate Professional treatment. See the Form 3801 instructions.

Level 2
January 6, 2022

Still, the S Corp is in the active trade or business of property management and should not be treated as a PAL.