@Taxpayer40 wrote:
Turb Tax refuses to allow me to identify this as rental related
TurboTax refuses to allow that treatment because figures that appear on Line 4a are treated as capital gain.
@Taxpayer40 wrote:
...clearly the gain is passive under 469 and just because capital gain does not mean it is not passive.
Clearly, it is not. Capital gain is not treated as passive income under Section 469.
Your best bet is to contact the administrator/executor of the estate (or whomever is responsible for preparing the 1041) and inquiring as to how the transaction was handled on the return. Often, the sale of rental real estate will result in Section 1231 gain and depreciation recapture (unrecaptured Section 1250 gain).
