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Passive activity and Non passive activity on Schedule E

john-jbacpa
Level 2

I have an S corporation taxpayer whose business is an importing business.   Last year, the taxpayer purchased a building as a rental property.  Now,  as a 100% shareholder of the business, my client needs to report his normal income (S corporation importing business) as nonpassive income and rental property income as passive income on schedule E page 2.   When I click "not a passive activity" on 1040 screen 20 S corporation information, every income including rental income is reported as nonpassive income.  Is there any way I can report rental income as passive income and importing business income as nonpassive income on schedule E page 2?  Thank you

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Accepted Solutions
sjrcpa
Level 15

Divide it into 2 K-1s for entry in the software.

Watch the basis calculation.


Ex-AllStar

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1 Comment 1
sjrcpa
Level 15

Divide it into 2 K-1s for entry in the software.

Watch the basis calculation.


Ex-AllStar