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?
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?