CharlesStanford
Level 2
Friday

LLC filing a 1065.

Client has long-term rentals but does not qualify as a real estate professional.  He also has two short-term rentals which meet all the requirements for losses being fully deductible (I know the requirements, no need to revisit/repeat them here).  How to present these on the 1065 in ProSeries and have the K-1 flow properly to Form 1040?

Thanks in advance.

 

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Terry53029
Level 15
Level 15
Saturday

short term rental with services would be entered on the 1065 page one (all income and expenses) long term rentals on 8825 rental income/expense worksheet

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Accountant-Man
Level 13
Saturday

Assuming that the members are active managers of the entity, the page 1 income/loss will be non-passive and the rental losses on the 8825 will remain as passive.

And...FYI, the K-1s will have entries on both lines 1 and 2, and PS requires two separate K-1 worksheets for the members' 1040s.

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