K1 where to check to make it NON passive.

Forum|Forum|6 years ago
April 8, 2020
2 replies
75 views

I need to make the k1 NON passive.. but it is showing up on the sch E as passive... how do I switch this?

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

@shf1957 wrote:
the only figure on this k1 is rental loss

Rentals are passive unless the person is a Real Estate Professional (and materially participates in that rental). It the taxpayer a Real Estate Professional?

IRonMaN

Level 15

There are some boxes to check towards the top of the K-1 worksheet.

Slava Ukraini!

shf1957Author

Level 6

Honestly, I can not see that on the computer program.. when entering a k1 first lines are for name and FIN etc.. then there is the boxes for..public trade.. then general partner etc.. next to income is boxes stating .. stuff.. the only figure on this k1 is rental loss.... where else would it be... I see on a copy of last years.. from another busn it falls under non passive... mine keeps going to passive..

Just-Lisa-Now-

Intuit Community Champion

Active participation? material participation? why is it non passive?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

M

Michael Plaks

Level 3

This frustrating issue still exists in 2021 software and is driving me up the wall. NO, this is NOT about RE Professional. There're other situations where a K-1 loss from Box 2 can be NON-passive and which has nothing to do with REPS. Specifically, short-term rentals with material participation.

If such property is on Sch E, we have the "other passive exceptions" checkbox to force it into non-passive treatment. K-1 however does not offer a similar option, and apparently there's no way to force the non-passive treatment on such Box 2 losses. This is a deficiency of ProSeries. You can do it in UltraTax, for example. And again - it's not about REPS.

T

Terry53029

Intuit Community Champion

Quit fighting it and just override schedule E page two

Sign up

Login with SSO

Let's get you signed in

Login with SSO