No and no.

1. REPS serves a specific purpose, this is not merely some innocent checkbox. It changes the tax treatment of ALL rental activities with material participation, and the taxpayer must qualify for it. What I need is to change ONE activity, not all of them, to non-passive, and for a person who does NOT qualify for REPS. ProSeries makes it possible when such an activity is reported on Sch E but not when it's within a partnership and the loss is passed via K-1 Box 2.

2. Similarly, "subject to recharacterization" is not just some innocent checkbox. It also has a specific purpose (land and self-rentals), and ironically forces the behavior opposite to what we need, even if it was applicable which it isn't. It forces losses to be passive, while I need them to be non-passive.

ProSeries missed the mark on this one, apparently. Other tax software, such as UltraTax, does allow the preparer to choose passive v. non-passive treatment for K-1 activities. ProSeries does not.