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Workaround to show Schedule of Activities for S corp with active rental real estate

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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1 Comment 1
TaxGuyBill
Level 15

In my opinion, it makes more sense to be reported on the 8825 and Box 2 of he K-1 (even though the Instructions for 8825 imply otherwise).

If you feel it should be on page one AND feel that they should have details of each rental, you could just include your own version of the schedule of activities.  Or even set up two files:  One 'mock' file with entering them on 8825 (and include that as a schedule of activities in the actual return you give the client) and then use the 'real' file to put it one page one.  But as I said before, in my opinion it makes more sense to use the 8825 on the filed return.

 

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