Micibug
Level 1

A new client has an LLC S corp with three short term vacation rental properties (he subleases the properties from the property owners and then rents them out as Airbnbs). 

On the 2023 tax return, the activity for each rental is reported separately on a Schedule of Activities. All of the income and expenses from each rental flows through to page 1 of the 1120S as ordinary. The net loss is reported in box 1 of the K-1 as an ordinary loss. 

I'm trying to figure out how I can recreate this in ProConnect. If I report everything in the Ordinary Income section, there's no way to show the income and expenses from each rental separately. If I report it in the Schedule K Rental Real Estate (8825) section, the activity does not flow through to page 1 of the 1120S and the net loss goes into box 2 of the K-1. I tried checking the box for "Not a Passive Activity" but that did not help. 

Does anyone have a workaround for this? It's really frustrating trying to enter it because it seems ProConnect isn't built to handle this kind of situation (not sure what software the other preparer used).  

 

 

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