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@Avs19 wrote:

is there any reason to group?

I thought one could avoid NIIT

how do I let Proseries know that

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If he meets the qualifications of a Real Estate Professional, grouping them will help meet the Material Participation Test.  If they are a Real Estate Professional and Materially Participate in each property, then it is treated as non-passive.

If it is non-passive, then it can avoid NIIT.  If it was passive, I think NIIT would apply.

I haven't looked at it for a really long time so maybe ProSeries added an easier method, but you can manually make the adjustment on line 4b of Form 8960 (at least that is how it used to be done; as I said, maybe ProSeries added an easier way to do it).