I have an LLC with two partners with 50/50 ownership. Both members are active and materially participate, but when I import the K-1s into their Form 1040, the ordinary business loss is limited and is shown as passive, when it should be active without limitation. I went back in to the K-1s in the LLC and changed the boxes so both show that they are general partners and LLC managing members. What else do I need to do to accomplish what is needed?
Solved! Go to Solution.
Oh good grief! I see what you are talking about in Part III at Item 1 "Ordinary business income (loss)" where I needed to check the box for "material participation." It worked like a charm!
I looked for this 'til I was blue in the face last night after a 9+ hour day at my desk and couldn't see it! I'm glad you guys are around to talk to. Thanks very much!