@cusco88 wrote:
.....can't recall exactly. not sure if by that selection it changes my rental to be earned income instead of passive?
No, active participation does not change your rental income from passive to earned income.
Rather, it simply is one of the factors that qualifies you to take advantage of the limited exception to the passive loss rule (you can deduct up to $25,000 ($12,500 or less if married filing separately)).
See https://www.irs.gov/instructions/i1040se#en_US_2021_publink24332td0e578
