Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Is entering on two separate K-1 inputs the only way to correctly reflect passive and nonpassive income when a partnership has self-rental and passive rental properties?

bzach
Level 2

Taxpayer has a partnership, under which he owns two rental properties. One is a self-rental and one is not. Both rentals have positive net income. In this situation, the self-rental should be non-passive income and the other rental should be passive, correct? But I can only get Lacerte to classify all as non-passive or all as passive on his K-1 input in the individual 1040. What is the best way to correct this?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
PhoebeRoberts
Level 11
Level 11

In that situation, I enter it as multiple K-1s. (Actually, I enter rental activities as multiple K-1s routinely, unless the client has elected to aggregate.)

View solution in original post

0 Cheers
2 Comments 2
PhoebeRoberts
Level 11
Level 11

In that situation, I enter it as multiple K-1s. (Actually, I enter rental activities as multiple K-1s routinely, unless the client has elected to aggregate.)

0 Cheers
abctax55
Level 15
Me, too....
And it's one of those returns I'm working on now, with 40 plus K-1's with ordinary and rental income/loss that is driving me bonkers :smile:   The spreadsheet I use to reconcile the return is rather involved.
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
0 Cheers