sstreit
Level 2

I'm working on a return with Schedule E land rent - taxpayer does not actively or materially participate.  There is rent income, real estate taxes and some insurance.  That's it.  It results in income (not a loss).  Proseries is defaulting to "nonpassive" for this income which will then not offset a passive loss from a K-1 on Sch E p. 2.  Last year, exact same situation and it was passive.  When I scroll all the way to the bottom of the Schedule E worksheet it clearly shows that it has nonpassive status and overriding that to "passive" does not change anything.  Any idea why it is doing this and how to fix it?