Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
jklandsiedel
New Member

I have an investment in life settlements that are considered non passive.How do I get the program to consider it nonpassive when the program assumes it is passive?

I enter the income received, but there were no questions concerning whether or not it is considered passive vs nonpassive. The information was from a fiduciary form 1041, schedule K-1.

1 Best answer

Accepted Solutions
IreneS
Intuit Alumni

I have an investment in life settlements that are considered non passive.How do I get the program to consider it nonpassive when the program assumes it is passive?

OK - Good!  Since you are using the CD/Download version of TurboTax, you could always go into Forms Mode and check the box on in the Check All That Apply section at the top of Schedule E.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

6 Replies
IreneS
Intuit Alumni

I have an investment in life settlements that are considered non passive.How do I get the program to consider it nonpassive when the program assumes it is passive?

What line(s) on the K-1 were the income reported on?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
jklandsiedel
New Member

I have an investment in life settlements that are considered non passive.How do I get the program to consider it nonpassive when the program assumes it is passive?

What I received is a grantor letter with instructions on where to input the income on Schedule E.  I have ordinary income to be reported on line 3 (although on a separate instruction sheet it says to input it on line 4, but the program didn't like it on line 4). There were expenses on lines 10 and 13.  There were also small interest and dividend incomes for schedule B. The income shows up as passive on the worksheet. The income is not subject to self-employment, and the type of activity is "8", other portfolio income.
IreneS
Intuit Alumni

I have an investment in life settlements that are considered non passive.How do I get the program to consider it nonpassive when the program assumes it is passive?

What kind of income is it?  rental?  royalties?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
jklandsiedel
New Member

I have an investment in life settlements that are considered non passive.How do I get the program to consider it nonpassive when the program assumes it is passive?

Income from life insurance settlements.  The company bought life insurance policies and paid life insurance premiums, and when the policies matured (the person dies), then the company receives the payout from the life insurance company.
jklandsiedel
New Member

I have an investment in life settlements that are considered non passive.How do I get the program to consider it nonpassive when the program assumes it is passive?

I tried several times to get the "materially participate" screen to pop up, and it finally did. Thanks.
IreneS
Intuit Alumni

I have an investment in life settlements that are considered non passive.How do I get the program to consider it nonpassive when the program assumes it is passive?

OK - Good!  Since you are using the CD/Download version of TurboTax, you could always go into Forms Mode and check the box on in the Check All That Apply section at the top of Schedule E.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v