Calneva
Level 3
10-12-2021
11:50 AM
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Is there a preferred way to enter passive & non-passive activities appearing on a single K-1 ? For example Line 1 Ordinary business income(loss) is non-passive and Line 2 Net Rental Real Estate income(loss) is passive. If box is checked as Not a Passive Activity line flows through as non-passive but line 2 also comes through the same way. If the box is not checked Line 1 and Line 2 are netted together and treated as passive. Do we need to use the "Separately Stated Income & Deductions" input line ?
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