Ah, TurboTax has those questions set up to classify you as real-estate professional. In order to demonstrate material participation in a real estate activity and have it be a business instead of rental activity you have to spend more than 50% of your work time in real estate related activities and have more than 750 hours in real estate activities for the year. If you qualify for both of these then you qualify as a real estate professional and the rental activity is a business and not a passive activity.
When you start the rental property TurboTax will ask if you are a real estate professional and ask about your participation in real estate activities. If you can answer yes to both of the questions then you'll be classified as a real-estate professional and all of your rental activities will not be shown as passive income.
@elel
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