Investors & landlords

@Charles_P...We attempted to recreate the issue you are confronting.  In our test return, the rental property loss would not carryover (similar to your situation) despite the fact that we had designated ourselves as Real Estate Professionals, with not only materially participation but also active participation.  In other words, we checked the boxes indicating more than 50% of our time was spent in real estate activities, and further that such time was more than 750 hours for the year.

However, upon reviewing the page wherein we entered information about our test property, we noticed that there was a page in which we did not designate that our participation was material.  Below is the page.  You will see that we clicked the radial button for material participation.  Upon doing so, our rental loss carried over to Schedule I line 5, and Form 1040 line 8.