Have a California resident client who owns and rents out farmland in Ohio.  Getting a diagnostic telling me income/loss will be treated as nonpassive on California return.  To correct, I am to enter 1 in Real Estate Professional...but she is not such.  Any help in correcting this to allow for passive

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sjrcpa
Level 15

Cash rent on Sch E or crop share on 4835?


The more I know the more I don’t know.

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abctax55
Level 15

Do you have "land" entered as the type of property?

HumanKind... Be Both

Cash rent with expenses on Schedule E

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Yes, I do.

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sjrcpa
Level 15

It is not passive. The software is correct.


The more I know the more I don’t know.