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Level 5
April 21, 2021
Question

Form 8582 ignoring Active Participation

  • April 21, 2021
  • 2 replies
  • 12 views

Client has a rental property.  On the Schedule E worksheet I checked, under 'Check All That Apply', Box C for Active participation.  It has a small loss.  The 8582 is not putting this on Part 1, Line 1b.  It's   putting it on Line 3b.

Is there another box to check that I'm missing?

Thank you.

 

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2 replies

Level 6
April 21, 2021

I was going to say that you also should check Box D material participation.  But even without that box checked, it should still go to Line 1 b.  But, try material participation anyway and see if it works

Level 5
April 21, 2021

I tried that.  No change.  It is still on line 3 b. 😞  

I tried typing in enough income so it has net income, also no change.

 

dkh
Level 15
April 21, 2021

What type of rental property?   How many days a rental?  Any personal use days?   When you say a "small loss"  what are we actually talking about?     

 

Level 5
April 21, 2021

365 days as a rental, no personal use, the loss is ($900).