Business & farm

You should not be entering, or ever have entered, the boat rental on Form 8825.  As you pointed out, that is for real estate, not personal property like boats.

 

It should be reported as general business income on the Partnership return, both for the first boat and for the second boat.  And forgot about those rules about 7 days, 30 days or services ... again, those are for real estate.

 

As was pointed out above, to indicate whether or not you are "passive" with the LLC/Partnership happens when you enter the K-1 into your personal tax return.  That is not determined on the Partnership return.