ddh2020
Level 3

One of my clients has a rental loss of the year, and proseries is not calculating it automatically like usual.  

On schedule E Worksheet, I usually enter the property's info and click the boxes for "active participation" and "Material Participation", then i proceed to enter expenses.

Line 21 on Schedule E is resulting in a loss.  However,  line 22 "Deductible rental loss" is 0.  If i scroll down it says "Passive dissalowed loss" all the way to the bottom.  Nowhere in the return am i stating that this is a passive activity as the owner actively participates in the rental business.

The only way i got proseries to calculate this loss is by checking box "G" for "Other passive exceptions", I dont even know what that means.

Has anyone encountered the same issue?


Thank you

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