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Thanks for the quick reply Mike 9241.

 

I have another K-1 for a Real Estate Investment (rental property) which I also do not materially participate in. I entered a loss in Part III Box 2 (Net rental real estate income/loss). This also shows up as '0' in Schedule E (form 1040). 

 

Should it also show as 0 like the restaurant investment?

 

I see both investments in Form 8582.