I agree. In a Passive Activity Sec 179 is not allowed, which is why nothing is being taken and it is assumed to be disallowed and carried forward. The exception is if the person is a Real Estate professional with all the IRS requirements. The client has the qualifications, so what I want to do is give him the Sec 179 deduction by flowing into his K-1.

I can't find anywhere that I can make this election so he is treated as a RE pro or do I just manually enter the correct info on his K-1 and the 4562 and adjust the carryforward?