Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Rental Real Estate 1065 and Sec 179

Devildog8589
Level 1

My client has a partnership which conducts rental real estate activity. He has a net income after expenses. He has Sec 179 expenses which would offset the net income, but it is disallowed because of passive activity rules. 

However, he can qualify as a RE professional. The problem is that the software will not flow the Sec 179 to the K-1 because it is disallowed and carried forward. How do I enter the appropriate portion of the Sec 179 expenses to flow to the K-1 so it can be used on the personal return? 

0 Cheers
5 Comments 5
sjrcpa
Level 15

the Partnership is not a Real Estate Professional.


The more I know the more I don’t know.
Devildog8589
Level 1

no the partnership is not, but I need to flow the sec179 to the k1 for the partner who is eligible to take the deduction

0 Cheers
sjrcpa
Level 15

You're working on the 1065?

Have you considered using bonus depreciation instead of 179?


The more I know the more I don’t know.
TaxGuyBill
Level 15

@Devildog8589 wrote:

How do I enter 


 

You haven't told us what software you use, so we can't tell you how to enter something.

Devildog8589
Level 1

I'm using ProSeries

 

0 Cheers