Question

Declaring as a Real Estate Professional under a LLC ,K-1

Forum|Forum|2 years ago
March 12, 2024
1 reply
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I found an old post for a step by step process under Schedule E. I have not found how to exceed a material participation level which limits the loss to 25K under the K-1 form. How do I get treated as a Real Estate Professional?

TurboTax Home & Biz Windows

CatinaT1

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W

WilHen02Author

I have now progressed far beyond this original post in seeing where TT is faulty. See below.

I do know how to update software.

K-1 part 111,line 1 , checking the materially participated box decreases tax due even when line 1 is blank and the only entry is in line 2 . Incorrect linkage.

As there is no K-1 check for Real Estate Professional, Sched E limits the loss to 25K at line 32. That would be ok if the line 43 entry corrected the limit. It does not.

Correctly entering Sched E line 43 only causes the red line error highlight and does not recalculate taxes due.

I should spend more of my time on the phone to explain the above? Maybe TT should proof their work.

W

WilHen02Author

OK, the 3/21/24 update made some progress. The K-1 ,line 1 now seems to function correctly. The line 2 functions better as well.

The help under sched e line 43 now sends you to the "Federal Information Worksheet ". In forms view this worksheet is labeled as "Info wrks" not as Federal Information Worksheet. Another case where you can only get to where you need to be thru step by step and not forms view ? Anyway, in part VI you can check the box to correctly calculate a rental loss in excess of the normal 25k limit.

The remaining problem; The IRS requires a statement be filed to claim Real Estate Professional. by placing this box in a worksheet it will not be forwarded to the IRS. How is the IRS requirement fulfilled?