sstreit
Level 2

Rental activities are considered passive by definition unless you are a real estate professional, which my client is not.  If I select code 5 at the top of the worksheet for land and have a loss, Proseries calculates that as a passive loss but if there is profit, it changes to nonpassive.  Doesn't make any sense at all.  If I change the code to 4 which is commercial property, it stays passive with a profit or a loss.  So, I changed the code to 4.  Must be some sort of glitch with code 5.  Can't think of any other explanation.

 

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