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New Member
posted Jul 11, 2019 1:45:33 PM

How can I change passive income to non passive for trust previous help said to follow the prompts after rental and I entered no but still shows as passive on k1 letter I

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3 Replies
Level 15
Jul 11, 2019 2:13:39 PM

What form are you filling in ?   The 1040 or the trust 1041?  

New Member
Jul 11, 2019 5:30:21 PM

I am filing a 1041 but need to have income as not passive and show as letter d on the K1 not the letter I for passive

Level 15
Jul 11, 2019 7:30:11 PM

Income from a trust is usually passive since the trust cannot work and earn wages ... so changing it to non passive is not an option especially since rental income is always passive.  You probably should talk to a local tax professional to get educated in these matters and to get the 1041 filed correctly.