I have the exact same problem. I own some residential properties that I rent out under a LLC. I actively manage these properties and file a tax return for the LLC using TurboTax for the first time this year. Now, I try to use TurboTax to file personal tax return for the first time. My accountant has reported the rental income from schedule K1 as non-passive in previous tax returns. For some reason, possibly a bug in the software, my K1 rental income always appears as passive income in schedule E, even though I kept trying different answers in the interview section. I would very much appreciate it if someone could suggest a solution or workaround to this problem.
