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Form 8582 ignoring Active Participation

Client has a rental property.  On the Schedule E worksheet I checked, under 'Check All That Apply', Box C for Active participation.  It has a small loss.  The 8582 is not putting this on Part 1, Line 1b.  It's   putting it on Line 3b.

Is there another box to check that I'm missing?

Thank you.

 

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7 Replies 7
DTNY07
Level 5

I was going to say that you also should check Box D material participation.  But even without that box checked, it should still go to Line 1 b.  But, try material participation anyway and see if it works

I tried that.  No change.  It is still on line 3 b. 😞  

I tried typing in enough income so it has net income, also no change.

 

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I found the answer.  The taxpayer is married filing separately.  Bummer!  

PATAX
Level 11

Married filing separate returns seem to always have issues with them.. just my opinion

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They really do.

dkh
Level 11

What type of rental property?   How many days a rental?  Any personal use days?   When you say a "small loss"  what are we actually talking about?     

 

365 days as a rental, no personal use, the loss is ($900).