Real Estate Professional for a Trust

[jeffm]

For a Trust (Using TurboTax Business) how can I specify that I am a real estate professional?   I believe a trust can be a real estate professional as outlined here: https://www.journalofaccountancy.com/issues/2014/jul/trust-can-be-real-estate-professional.html

[Anonymous_ · Accepted solution]

You should be able to accomplish that in Forms Mode directly on Schedule E. Check the Material participation box for the applicable rental property.

[Dan835]

I clicked material participation in Schedule E forms, and it then asked to check being a real estate professional in the information worksheet which was done. However, this didn't change anything. I would have expected this to drop the NIIT tax. This is for a Trust return.

[PatriciaV]

You need to manually enter the amount from Schedule E pg2 Part V Line 43 on Form 8960 Line 4(b). This will adjust the Net Investment Income used to calculate the NIIT.

According to the IRS Instructions for Form 8960 Line 4(b), "...line 4b includes the following items.

Nonpassive net rental income or loss of a real estate professional where the rental activity rises to a section 162 trade or business."

@Dan835