Active participation and Material particiaption in Schedule E Worksheet - how to set them

[pm8921]

Active participation and Material participation are two separate checkboxes in Schedule E Worksheet. They determine whether rental income/loss can be included in active income/loss.

Through the step-by-step process, there is only one page with a few questions to 'confirm Your Professional Status' for all properties at the beginning. This seems to be for active participation.

Is there a way to set material participation in the Step-by-Step process/UI? Or we have to edit Schedule E Worksheet directly to set Material Participation?

Thanks.

[Anonymous_ · Accepted solution]

You should come across the screen below in the Property Profile section.