Passive to Nonpassive K-1

[Franchesca]

Hello,

A client with an S-corp and a rental. When I completed schedule K-1, I checked the all investment is at risk in part II and I also checked materially participated in part III.

When I am getting ready to enter the Corporation's suspended loss carryover from prior year in section A column B, the system changes nonpassive to former/passive.

I understand the rental activity is considered passive; however in regards the carryover loss,  the client is materially participating in the corporation and the suspended loss should be nonpassive in section A. Does anyone know if there is a way to show nonpassive status in Section A of the K-1 after entering the carryover loss from prior year? Thank you. 

[taoseno]

Prior year passive losses will remain passive........just because they materially participate now does not change the prior year passive losses.