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K1 where to check to make it NON passive.

shf1957
Level 4

I need to make the k1 NON passive.. but it is showing up on the sch E as passive... how do I switch this?

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TaxGuyBill
Level 15

@shf1957 wrote:

the only figure on this k1 is  rental loss


Rentals are passive unless the person is a Real Estate Professional (and materially participates in that rental).  It the taxpayer a Real Estate Professional?

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8 Replies 8
IRonMaN
Level 15

There are some boxes to check towards the top of the K-1 worksheet.

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shf1957
Level 4

Honestly, I can not see that on the  computer program.. when entering a k1  first lines are for name and FIN  etc.. then there is the boxes for..public trade..  then general partner etc..  next to income is boxes stating .. stuff.. the only figure on this k1 is  rental loss....    where else would it be...  I see on  a copy of last years.. from another busn it falls under non passive... mine keeps going to passive..

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Just-Lisa-Now-
Level 15
Level 15

Active participation? material participation?  why is it non passive?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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TaxGuyBill
Level 15

@shf1957 wrote:

the only figure on this k1 is  rental loss


Rentals are passive unless the person is a Real Estate Professional (and materially participates in that rental).  It the taxpayer a Real Estate Professional?

View solution in original post

Abhay Bhargava
Level 2

Did you get answer to your question.  I have same issue.  I did check material participation, active participation but it still shows passive.  All investments at risk also checked.  Also check trade or business.

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suzanner
Level 1

Did you ever get a answer or a fix for your question  I am dealing with the same issue

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Abhay Bhargava
Level 2

Yes - In the Federal Info worksheet in Part X - there is question about RE professional.  Check that box - however one must read rules of what qualifications one must meet to be RE professional.

Hope this helps!!

Abhay Bhargava, CPA

suzanner
Level 1

Thank you so much

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