Scorp - for rental income does not allow NON passive income/loss classification. It keeps classifying my loss as passive or completely REMOVEs it from the form.

[trac580060]

I sat on phone for 2 hours and no real help. VERY disappointed in Turbo tax this is my first year using it

[Anonymous_]

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@trac580060 wrote:
I sat on phone for 2 hours and no real help. VERY disappointed in Turbo tax this is my first year using it

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If you are a real estate professional who materially participates in the rental activity(ies), you will most likely have to use a desktop version of TurboTax and enter the figure(s) in Forms Mode. 

TurboTax does not appear to be programmed for this particular scenario.

[Mike9241]

don't know that much about online versions.

but in 1040 desktop using step-by-step mode (perhaps the same as online versions)

entered S-Corp info then check yes to being a real estate professional and then yes to materially participating

the loss on line 2 of the k-1 was carried to the non-passive loss section of schedule E form 8582 was not generated.

if you use desktop forms mode the real estate pro question is in the info worksheet while you must check off material participation on the k-1

but this all depends on being a real estate professional. if you check no to this would mean the loss is subject to the PAL rules.

[Anonymous_]

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@Mike9241 wrote:

if you use desktop forms mode the real estate pro question is in the info worksheet while you must check off material participation on the k-1

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The procedure described by @Mike9241 also worked for me (perfectly). 

I am fairly certain that you would need a desktop version to check the Real Estate Professionals box on the Information Worksheet, however.