Can't get imported K-1 to show LLC members' losses as nonpassive.

[Ekhaterina]

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?

[IRonMaN · Accepted solution]

There are some boxes to check near the top of the K-1 worksheet in the 1040 module.

[Ekhaterina]

Hello IRonMaN,

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!

Ekhaterina  

[IRonMaN]

I’m glad you got it figured out. :smile: