I'm working through my K-1 in TurboTax and noticed something that’s a bit confusing. I’ve marked myself as a limited partner (not a general partner), yet TurboTax is still prompting me with questions about material participation.
From my understanding, I thought material participation designation generally wouldn’t apply to limited partners. Is there a reason TurboTax is still asking?
To add some context: I am fully employed by the same organization that issued the K-1. Could that affect how material participation is determined—even though I’m technically listed as a limited partner?
I’d appreciate any clarification or guidance on whether material participation rules can still apply in this case, and how to correctly answer the questions in TurboTax.
Thanks in advance!
