JosephS1
Expert Alumni

Get your taxes done using TurboTax

Thank you for the token and allowing me to view the diagnostic copy of your return.

 

Even though you listed yourself as a Real Estate Professional, as you obviously are from what I was able to see, you also checked that you did not materially participate in any of the K-1 items.  Checking that you did not materially participate automatically has the system determine that it is a passive activity unrelated to your rentals for which you do actively materially participate.

 

If you can substantiate in any way material participation in the K-1 rentals, either by having a vote or say in the management of the partnership or item that is rented, then checking yes to material participation will enable the losses to be recognized currently.

 

One other observation is that you show a sizeable K-1 loss for 2021 but only 1 of your K-1's is listed with a beginning capital balance nor did I see any dispositions of any prior K-1's.  You may want to check to see if you listed the 2021 K-1 as materially participating to enable the loss to be recognized.

 

@hjohnt 

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