Passive Loss K1 Real estate with S Corp combination

[Brandon Beaver]

I should be able to take a K1 loss from the real estate entity I have when combining this Partnership with my S Corp company. I am not certain how to enter this correctly in Turbo tax so the K1 loss is not considered passive and suspended.

Relying on Reg 1.469-4(c). This is the attachment I put together to include in the return. Any help on how to enter this combination of grouping into Turbo tax?

My S Corp has a long term lease with my newly created Real Estate Partnership. 

Statement filed in accordance with REV. Proc. 2010-13

Election to group activities pursuant to Reg. 1.469-4(c)

The taxpayer hereby reports the following grouping activity in accordance with Rev. Proc. 2010-13

New Grouping:

The following activities have been grouped as a single activity for the first time during the calendar year.

Name of entity: 

Schedule: S Corporation

Address: 

Fed ID# XXX

Name of entity: 

Schedule: Partnership

Address: 

Fed ID# XXX

Hereby declares that any and all grouping created above constitute and appropriate economic unit for

Measurement of gain or loss for purposes of IRS Sec. 469

Thanks Brandon 

[M-MTax]

Not sure but I think you have to enter that into the Business program manually.....Turbotax doesn't support most grouping combos. Probably have to print and mail the return also.

[Mike9241]

the only way to make it work in Turbotax is on the partnership k-1 to list the loss on line 1 (not line 2)

indicate the type as "business" (not rental real estate) and check the box "materially participates" this should carry the loss to schedule e page 2 the non-passive loss column. since LP's don't qualify you must check you are a General Partner.

hopefully your partnership is not a limited partnership because the activities of an LP can't be grouped with other activities in most instances. REG 1.469-4(d)(3)