Calneva
Level 3

Is there a preferred way to enter passive & non-passive activities appearing on a single K-1 ?  For example Line 1 Ordinary business income(loss) is non-passive and Line 2 Net Rental Real Estate income(loss) is passive.  If box is checked as Not a Passive Activity line flows through as non-passive but line 2 also comes through the same way.  If the box is not checked Line 1 and Line 2 are netted together and treated as passive.  Do we need to use the "Separately Stated Income & Deductions" input line ?

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