I have passive income from a rental activity on Schedule E, but it is not being offset by passive rental losses from my K-1's. The Schedule E income does not flow to Form 8582. The Schedule E Activity Summary Smart Worksheet shows the activity's Passive status as "Nonpassive". But its should be passive because it is rental real estate. How can I get the Passive status to change to "Passive"? Then the net rental income should flow to Form 8582 and be offset by passive losses.
Thanks
