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Grouping K-1's

lisaj
Level 2

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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sjrcpa
Level 15
9 Comments 9
abctax55
Level 15

No need to ask twice:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/grouping-k-1-and-busine...

 

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
sjrcpa
Level 15

Does ProSeries have a box to check for self rental?


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TaxGuyBill
Level 15

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:

https://www.irs.gov/pub/irs-drop/rp-10-13.pdf

 

If that is not what you are trying to do, please give as more details about what you are trying to do and why.

lisaj
Level 2

Thank you so much.  I have all of this done  and all the attachments but cannot get all the losses to be allowed in proseries.

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TaxGuyBill
Level 15

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.)?

 

dd4vols
Level 10
Level 10

but, as any potential politician knows, it's better to have a grouping problem than a groping problem!!

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posted.
lisaj
Level 2

I have the materially participated and actively and the real estate is a trade or business checked.  I do not see anything on the informaton sheet regarding a real estate professional.  

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sjrcpa
Level 15
cgroubertcpa
Level 1

Lisaj,

 

It appears that no-one understands what you are asking.  The appear to think you want to group all rental activities as one activity for material participation.  You want to combine a rental property with a an operating activity (like a dental practice) where the taxpayer owns the rental property and leases it to his/her dental practice.  The code clearly allows you to combine this properties as one economic unit, but there does not seem to be a way for proseries to allow the program to group the two activities.  

Have you found an answer yet?

 

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