My wife and I have a Short Term rental in a LLC. I've already verified that the rental income can be treated as non-passive and meets ALL of the rules and conditions to do so. I'm 100% confident in this and have the complete documentation to back it up. The income is reported as rental income on our K-1's.
However, I need Turbo Tax to treat it as non-passive. Instead, when filling out the questionnaire for our 1040, it doesn't allow me to treat it that way. Tax Cut has a option that allows you to specify it. My CPA advisors have the same ability but want to charge me $1200 to do my taxes.
I have spoken to customer support at QuickBooks weeks ago and they were very nice and agreed with me but at the end of the call they didn't know how to do it and told me that I needed to hire a CPA to file my taxes because Quick Books didn't appear to have a way. I'm not ready to give up on Turbo Tax yet so I'm begging for help.
Is there a way in Turbo Tax to indicate that the income from the K-1 Line 2 (Rental Income) be treated as non-passive instead of the traditional treatment of passive? How can I override this default setting?
Please help.
Thank you
