With Activity box for rental checked and no entry for line 1 ordinary income, when I uncheck material participation, taxes due climbs by thousands.
I understand what should be happening for material participation for line 2, but not when checking and unchecking a zero amount on line 1 when "activity" should not be linking to line 1 anyway.
You'll need to sign in or create an account to connect with an expert.
If you have no ordinary business income on Line 1 of Schedule K-1, do not check any boxes under that line. For Rental Income, check only the boxes under Line 2. Also, do not enter a zero on any income line.
To better phrase my problem. We do qualify as real Estate Professionals with an LLC for our rental units. I have not been able to get TT H& B to not treat the current loss as passive income, which limits the loss to 25K. I can do it by the previously described hack method. I am coming to the conclusion that TT has no method of processing Real Estate Professional rental losses. Not within E nor within K-1s. The K-1 does not have a drop down for R.E.P.s where the Active and Passive dropdowns are shown on the K-1.
I would expect the required statement could be attached as a scanned attachment were there a way to get TT to correctly treat the loss as an active loss.
Schedule E page 2 line 43 should Report all rental loss for a Real Estate Professional as fully deductible. It does not.
Schedule K-1 continues to incorrectly treat REP loss. K-1 will not carry over to pg 2 of Sched E.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
beanorama
Level 3
igpx330176
Level 2
px1
Returning Member
DanTheDapperMan
Level 1
waffles4926
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.