Grouping K-1's

Forum|Forum|6 years ago
August 26, 2020
9 replies
64 views

How do you do grouping of K-1's with a rental property and operating entity? I have 2 rental and 2 separate operating entities that are one business but also own the buildings and I do not want the losses limited after the Cost Seg we just completed.

ProSeries Professional

This topic has been closed for replies.

Best answer by sjrcpa

I have the materially participated and actively and the real estate is a trade or business checked. I do not see anything on the informaton sheet regarding a real estate professional.

See the other Lisa's picture https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/real-estate-professional/00/98681

abctax55

Level 15

No need to ask twice:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/grouping-k-1-and-business-entities/00/98561

HumanKind... Be Both

sjrcpa

Level 15

Does ProSeries have a box to check for self rental?

The more I know the more I don’t know.

T

TaxGuyBill

Grouping for purposes of being a Real Estate Professional is done by including a detailed statement with the tax return. You would attach a PDF of that statement to the tax return (or mail it with the mailed tax return). If you are grouping with the business, I think you are looking for Revenue Procedure 2010-13:

https://www.irs.gov/pub/irs-drop/rp-10-13.pdf

If that is not what you are trying to do, please give as more details about what you are trying to do and why.

L

lisajAuthor

Level 3

Thank you so much. I have all of this done and all the attachments but cannot get all the losses to be allowed in proseries.

T

TaxGuyBill

The purpose of grouping is to qualify for Material Participation.

Did you check the Material Participation boxes on the K-1 sheet and the Real Estate Professional box on the general "Info Wks" (the page where you enter the taxpayer's name, address, SS#, etc.)?

dd4vols

Intuit Community Champion

but, as any potential politician knows, it's better to have a grouping problem than a groping problem!!

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