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Reconciliation Real Estate Professional - Schedule E Line 43

Level 1

How do we generate the reconciliation for Line 43 of Schedule E to do a reconciliation of a real state professional who meets the qualifications to take the losses and not have them disallowed as passive? I have spent several hours trying to figure our to generate this line but cant seem to find the input to have the losses come though this line. What I'm thinking that there should be a worksheet inside the ProSeries with a questionnaire walking us through a questionnaire that would the losses or profits come to this line as per the regulations quoted below. Or if Someone can provide some guidance on how this issue was resolved for them? The IRS 2019 Instructions for Schedule E, page 3 indicates to calculate Line 43 in case of a real estate professional as well.

Under Sec. 469(c)(7)(B), taxpayers who (1) materially participate in real property trades or business for more than 750 hours and (2) perform more than 50% of their personal services they perform during the year in real property trades or businesses will not be subject to the general rule that all rental activities are treated as passive.

Great reads for this topics 

https://www.thetaxadviser.com/issues/2014/jul/skarbnik-july2014.html

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Level 11
Level 11

On the federal information work sheet, section X check the box "Real Estate Professional" also on the schedule E worksheet line D check box "Material participation" 

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2 Replies 2
Level 11
Level 11

On the federal information work sheet, section X check the box "Real Estate Professional" also on the schedule E worksheet line D check box "Material participation" 

View solution in original post

Level 1

Thank you so much! That worked 🙂