Grouping under 1-469-4 (S Corp & Disregarded Enity owned by same individuals)

Forum|Forum|9 months ago
September 17, 2025
1 reply
16 views

How do I group S Corp K-1 & Sched E Disregarded entity in Pro Series. The S Corp rents exclusively the commercial building owned by Disregarded entity. Regulation 1-469-4 says we can group them together even though they are reported separately on K-1 and schedule E.

Would appreciate feedback. Have reached out to Pro Series with no luck.

ProSeries Professional

T

TaxGuyBill

Level 15

Are you asking about how to make the election statement? Or are you asking how to treat the grouped activities?

Just checking, you know what grouping does and the purpose of it, right?

M

mschmidtcpaAuthor

Level 3

Thank you for getting back with me.

I have the election statement made and ready to do.My question is how do I do the actual grouping within the Proseries software. I was told I pick a common group name and link the Schedule E & K-1. Not sure how to do this or if this is really how it is done..

T

TaxGuyBill

Level 15

There is no need to 'link' anything.

The only thing that the grouping does is potentially make the Schedule E rental non-passive. On the Schedule E worksheet, just check the "other passive exceptions" box.

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