Publications 925 indicates that "Limited Partners aren't treated as actively participating in a partnership's rental real estate activities. This suggests that a limited partner cannot offset ordinary income with losses from a partnership's rental real estate activities. On the other hand, TurboTax Schedule K-1 (for partnerships), Part III, Line 2 has certain boxes which can be checked if one "actively participated in rental reas estate activities". I checked this box to indicate that I do actively participate. Also, I am a Limited Partner and I also checked this box in TurboTax Sch K-1, Part II, Line G. With these two boxes checked, TurboTax is offsetting my ordinary income with losses from my partnership's rental real estate activities. Could you tell me if TurboTax is treating this correctly, and if so why does it seem inconsistent with Publication 925? Thanks, Steve
