So I think I have two ways of approaching the Box 2 loss on my K1 form.
1. Passive loss that will only reduce my passive income. This year I have no passive income but this loss will carry forward to next year (and years beyond that?)
2. Non-passive loss that reduces my 1040 schedule E income if I qualify as a Real Estate professional. This will reduce my tax burden this year.
From all that I've researched, it looks like I qualify as a real estate professional as the owner/operator of both a realty company and my engineering services company (who pays rent to the realty company and occupies a portion of the building) but I don't want to miss-step here.
Can you offer some advice on the correct approach?
