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Investors & landlords
Again, thank you for your generosity and patience, @maglib . Unfortunately, your last post leaves me with more questions. First, in regard to Schedule E expenses, I have no other expenses. Also, you speak of Schedule E as if it something I can easily look at and fill out. But I am using TT, and it shields users from such forms and I don't know how to manually go through and review and change what's on Schedule E. Strangely (from a UI perspective) my TT "income/expense" summary screen includes both a "Schedule K-1" line (with the land rental payment amount) and a separate "Rental Properties and Royalties (Sch E)" line that shows a tiny (and unrelated to this land) oil royalties payment. When I go to "preview my 1040" in TT, I can find a form called "Schedule 1- Additional Income and Adjustments to Income" which lists (on line 5, "Rental real estate, royalties, partnerships, S corporations, trusts, etc." and even says "Attach Schedule E") and I can see from last year's return that these two amounts (referred to in previous sentence) get added together on Sch E. (Leaving me with the question: If my land-rental partnership income actually does flow into Sch E, why doesn't TT interview me about that K-1 (1065) partnership income under the same category ("Rental Properties and Royalties (Sch E)") as it's interviewing me about my oil royalty?) But an even bigger question, now that I've Iooked at last year's tax returns, is why that Schedule E lists the land-rental K-1(1065) amount under "non-passive income", when you said, "Passive just means you did not materially participate in the business."