The company is actively involved in drilling, they raised funds from investors to do that and has been doing this for several years. I contacted the company, and get the following:
"As a GP investor the loss is an active loss not passive. The investor takes this loss as active because they are theoretically at risk of liability. This falls under section 263c(see tax handbook)".
Since this is my first year doing this, and I don't use a CPA (the company says most of their investors use CPA, so they are not aware of this turboTax issue. But they think being identified by the software as a passive investor is causing me to lose some of the tax credit (coming from IDC deduction should be able to offset most of the income type).
Please let me know how to fix this problem, thanks.
