I received a Schedule K-1, which reports an Ordinary Business Loss on line 1. The materials with the K-1 states that the trading activity involved in the business is not a passive activity and therefore the amount on line 1 should be reported as nonpassive [Schedule E, Part II, line 28, column (i)]. How do I indicate this income is nonpassive in TurboTax?
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Most likely you will have to indicate that you materially participated in order to get the loss into that column.
Thanks. When I searched more globally for this issues, another tax software suggested that the user consider creating a 2nd K-1 entry for the amount on line 1, and mark it materially participated.
By the way, the K-1 entity referenced regulation section 1.469-1T(e)(6)
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