I am using Turbotax business. and I am filing for a LLP-partnership.
Income is generated from short-term rentals. Now the K1 generated has a box 2 income/loss.
This cannot offset the w2 income in TurboTax home and business because box 2 is real estate income/loss.
But Short term rentals are active participation and should allow for offsetting w2 income.
What needs to be corrected in filing the partnership?
You'll need to sign in or create an account to connect with an expert.
The net rental real estate income (loss) reported on Schedule K-1 Part III Line 2 can be reported as an active activity by answering "Yes" to the question "Did You Participate?" This question appears during the K-1 interview of your personal tax return.
on the personal side, when filling out part III of K1, I am filing section 2 -Net rental real estate income (loss) with actively participated checked but it does not reflect in the final deductions.
even checking the materially participated does not impact the numbers.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
RachelM
Returning Member
donnycheng1-gmai
New Member
Blank_Slate
Returning Member
ayshakeen
New Member
morg2019
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.