Lacerte is classifying a sec. 1231 gain as passive when I did not classify the transaction as passive. Why is it doing this?
On the delinquent 1120S, or on the timely 1040? Assuming on the timely 1040, go into your K-1 input and take the amount out of the line called Passive Net Section 1231 Gain and put it on the line called Net Section 1231 Gain.
