ssellstrom
Level 1

Califoria S Corp is ACTIVE, not passive, but LaCerte treats as PAL.  Screen 20.2 checks boxes "not a passive activity" and "Real Estate Professional", but the loss still appears on the Form 3801 Worksheets.

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PhoebeRoberts
Level 11
Level 11

California doesn't conform to Real Estate Professional treatment. See the Form 3801 instructions.

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ssellstrom
Level 1

Still, the S Corp is in the active trade or business of property management and should not be treated as a PAL.

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