Grouping K-1's

[lisaj]

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.  

[abctax55]

No need to ask twice:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/grouping-k-1-and-busine...

[sjrcpa]

Does ProSeries have a box to check for self rental?

[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.

[lisaj]

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.

[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]

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

[lisaj]

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.  

[sjrcpa · Accepted solution]

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

[cgroubertcpa]

Lisaj,

It appears that no-one understands what you are asking.  The appear to think you want to group all rental activities as one activity for material participation.  You want to combine a rental property with a an operating activity (like a dental practice) where the taxpayer owns the rental property and leases it to his/her dental practice.  The code clearly allows you to combine this properties as one economic unit, but there does not seem to be a way for proseries to allow the program to group the two activities.  

Have you found an answer yet?