K1 with nonpassive and passive income - how?

[loricpa100]

How do I make the ordinary business income nonpassive while maintaining passive for line 2 rental income?  Seems the K1 input I get all or nothing.  Both line 1 and 2 are passive (default).  I can check non passive and then the rental goes with the business income to the non passive line.  If I put in 500 hours, nope.  I have the business income also on line 14, yet that is not triggering it.  Of course, the business has a non passive loss, which is why really need it to offset other items within the return.

[George4Tacks]

You can set up two k-1 input for the same K-1. One is passive and the other is non-passive.

[sewcpa · Accepted solution]

have the K-1 reported as 2 K-1s (I label the 2nd one xxxx-rental and show it as passive)

[loricpa100]

Also a good answer - I like the idea of also noting it separately on the other post.  Thank you for the speedy reply

[PhoebeRoberts]

If you don't want to fiddle basis back and forth between 2 K-1 inputs, you can also use the Separately Stated Income and Deductions section to enter either the passive or nonpassive piece, depending on which presentation you prefer. If the $25k rental loss rule applies to your client, making the K-1 passive and entering the nonpassive loss as a separately stated item will apply the limits correctly.

[Accountant-Man]

Since K-1 line 2 is rarely non-passive, does checking the box for non-passive make line 1 non-passive and line 2 is still passive?