jimgsabbatini
Level 3
09-22-2022
02:06 PM
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I have a client who is a Real Estate Professional. However with a certain rental activity he has not materially participated. On the K-1 I answer the question that he is a Real Estate professional.
I do not include any hours and I do not check that it is a passive activity or non passive activity.
Lacerte just assumes because I checked he is a real estate professional that the loss is allowable. My understanding is that he still must materially participate. The Real Estate professional is just allowed to group activities.
What am I misssing ?
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