Question

Short term rental- partnership filing

Forum|Forum|3 years ago
April 18, 2023
1 reply
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I am using Turbotax business. and I am filing for a LLP-partnership.

Income is generated from short-term rentals. Now the K1 generated has a box 2 income/loss.

This cannot offset the w2 income in TurboTax home and business because box 2 is real estate income/loss.

But Short term rentals are active participation and should allow for offsetting w2 income.

What needs to be corrected in filing the partnership?

TurboTax Business Windows

PatriciaV

Employee

The net rental real estate income (loss) reported on Schedule K-1 Part III Line 2 can be reported as an active activity by answering "Yes" to the question "Did You Participate?" This question appears during the K-1 interview of your personal tax return.

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S

sunny131Author

on the personal side, when filling out part III of K1, I am filing section 2 -Net rental real estate income (loss) with actively participated checked but it does not reflect in the final deductions.

even checking the materially participated does not impact the numbers.