Scorp - for rental income does not allow NON passive income/loss classification. It keeps classifying my loss as passive or completely REMOVEs it from the form.

Forum|Forum|3 years ago
June 1, 2022
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I sat on phone for 2 hours and no real help. VERY disappointed in Turbo tax this is my first year using it

TurboTax Self Employed Online

Anonymous_

Employee

@trac580060 wrote:
I sat on phone for 2 hours and no real help. VERY disappointed in Turbo tax this is my first year using it

If you are a real estate professional who materially participates in the rental activity(ies), you will most likely have to use a desktop version of TurboTax and enter the figure(s) in Forms Mode.

TurboTax does not appear to be programmed for this particular scenario.

Mike9241

don't know that much about online versions.

but in 1040 desktop using step-by-step mode (perhaps the same as online versions)

entered S-Corp info then check yes to being a real estate professional and then yes to materially participating

the loss on line 2 of the k-1 was carried to the non-passive loss section of schedule E form 8582 was not generated.

if you use desktop forms mode the real estate pro question is in the info worksheet while you must check off material participation on the k-1

but this all depends on being a real estate professional. if you check no to this would mean the loss is subject to the PAL rules.

Anonymous_

Employee

@Mike9241 wrote:
if you use desktop forms mode the real estate pro question is in the info worksheet while you must check off material participation on the k-1

The procedure described by @Mike9241 also worked for me (perfectly).

I am fairly certain that you would need a desktop version to check the Real Estate Professionals box on the Information Worksheet, however.