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How do you do grouping of K-1's with a rental property and operating entity? I have 2 rental and 2 separate operating entities that are one business but also own the buildings and I do not want the losses limited after the Cost Seg we just completed.
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No need to ask twice:
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Does ProSeries have a box to check for self rental?
The more I know the more I don’t know.
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Grouping for purposes of being a Real Estate Professional is done by including a detailed statement with the tax return. You would attach a PDF of that statement to the tax return (or mail it with the mailed tax return). If you are grouping with the business, I think you are looking for Revenue Procedure 2010-13:
https://www.irs.gov/pub/irs-drop/rp-10-13.pdf
If that is not what you are trying to do, please give as more details about what you are trying to do and why.
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Thank you so much. I have all of this done and all the attachments but cannot get all the losses to be allowed in proseries.
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The purpose of grouping is to qualify for Material Participation.
Did you check the Material Participation boxes on the K-1 sheet and the Real Estate Professional box on the general "Info Wks" (the page where you enter the taxpayer's name, address, SS#, etc.)?
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but, as any potential politician knows, it's better to have a grouping problem than a groping problem!!
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I have the materially participated and actively and the real estate is a trade or business checked. I do not see anything on the informaton sheet regarding a real estate professional.
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See the other Lisa's picture https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/real-estate-professiona...
The more I know the more I don’t know.
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Lisaj,
It appears that no-one understands what you are asking. The appear to think you want to group all rental activities as one activity for material participation. You want to combine a rental property with a an operating activity (like a dental practice) where the taxpayer owns the rental property and leases it to his/her dental practice. The code clearly allows you to combine this properties as one economic unit, but there does not seem to be a way for proseries to allow the program to group the two activities.
Have you found an answer yet?