IOpine
Level 2
Tuesday
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If I understand your question correctly, it is of utmost importance to determine the taxpayer's relationship to the entity. Is this activity passive to the taxpayer? If so, the items of income, gain, losses, and deductions are passive. Based upon my understanding, passive vs. nonpassive is determined at the taxpayer level. The answer to this question would be quite relevant to determining what information you give your software.