How do you do grouping of K-1's with a rental property and operating entity? I have 2 rental and 2 separate operating entities that are one business but also own the buildings and I do not want the losses limited after the Cost Seg we just completed.
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Grouping for purposes of being a Real Estate Professional is done by including a detailed statement with the tax return. You would attach a PDF of that statement to the tax return (or mail it with the mailed tax return). If you are grouping with the business, I think you are looking for Revenue Procedure 2010-13:
If that is not what you are trying to do, please give as more details about what you are trying to do and why.
The purpose of grouping is to qualify for Material Participation.
Did you check the Material Participation boxes on the K-1 sheet and the Real Estate Professional box on the general "Info Wks" (the page where you enter the taxpayer's name, address, SS#, etc.)?
but, as any potential politician knows, it's better to have a grouping problem than a groping problem!!