Error on entering K-1 No K-1 to enter

Forum|Forum|1 year ago
February 25, 2025
1 reply
4 views

"Currently the total significant participation hours for all passive activities total less than the 501 hours needed to automatically make the activities non-passive. Please review your input and either continue entering activities until the total hours for all activities combined is greater than 500 hours, or remove the significant participation hours input from each activity. US - Ref #45948"

It is showing that it is on a partnership, however there is no partnership.

S

sipsforlifeinc

Level 2

Did you find a solution?

Kathi_at_Intuit

Moderator

Hi @sipsforlifeinc Welcome to the Community and thanks for posting your first questions! If you still need assistance with this, we would connect with ProConnect Tax Support.

The diagnostic is basically saying you’ve entered “significant participation hours” for passive activities, but the combined total is under 500 hours, so the activities don’t qualify as non-passive under the IRS rules. In ProConnect Tax this diagnostic could be triggered by the Passthrough K-1's or the Rental and Royalty Income (Sch E) input screens. The "View on Input Screen" on the diagnostic does not always take you to the input that is causing it, but a possible cause of it. In the case of this diagnostic, if the "View on Input Screen" is clicked on, it will take you to the Passthrough K-1's and not the Rental and Royalty Income (Sch E) screen.

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