This frustrating issue still exists in 2021 software and is driving me up the wall. NO, this is NOT about RE Professional. There're other situations where a K-1 loss from Box 2 can be NON-passive and which has nothing to do with REPS. Specifically, short-term rentals with material participation.

If such property is on Sch E, we have the "other passive exceptions" checkbox to force it into non-passive treatment. K-1 however does not offer a similar option, and apparently there's no way to force the non-passive treatment on such Box 2 losses. This is a deficiency of ProSeries. You can do it in UltraTax, for example. And again - it's not about REPS.