I used to work full time for a startup formed as an LLC. Each year I received a K-1 and reported it as non-passive income. I have since moved on and am no longer actively involved with the LLC. Do I now switch over to reporting it as passive income? Do I wait 5 years (one of the tests asks about being actively involved for 5 out of the last 10 years)?
Second question. If I have carried over non-passive loses from previous years can they still be applied?
