Common questions about entering partnership Form 8825 in ProConnect Tax

Below are solutions to frequently asked questions about entering Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S-Corporation, in the Partnership return.

What's new for tax year 2025?

For tax year 2025 the IRS has released a new Schedule A (Form 8825). If you’re a partnership or S corporation that is required to file Schedule M-3, you must use new Schedule A (Form 8825), Rental Real Estate Other Deductions, to report other deductions and include the total amount on Form 8825, line 17.

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How do I generate Form 8825 in the program?

1. Go to Input Return ⮕ Schedule K ⮕ Rental Real Estate.
2. Enter any applicable information on this screen.
3. Under the General Information section, make sure the 1=delete this year, 2=delete next year field is blank.
   • Entering 1 or 2 in field box will prevent the entry from appearing on Form 8825.

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How to generate the 8825 Schedule A starting in tax year 2025?

The 8825 Schedule A is now available and will generate automatically, if required. The Schedule A is only required if the M-3 is being filed with the return. Enter expenses on the Rental Real Estate (Form 8825) screen as normal.

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How do I link depreciation to Form 8825 instead of Form 1065?

1. Go to Input Return ⮕ Ordinary Income ⮕ Depreciation.
2. Select Details for the applicable Asset.
3. Locate the Asset Information section.
4. Select Form 8825, Rental Real Estate in the Form dropdown menu.
5. Choose the corresponding rental activity in field Activity name or number.

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Why does Form 8825 generate as blank when rental activity is absent?

Form 8825 will generate as blank if a number is entered in the If disposition applies to rental, enter rental number (enter as a negative if not real estate) field located under the Form 4797 section of the Dispositions screen. If you remove the entry, Form 8825 will stop generating.

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Where do I enter distributions that were reported on a K-1 issued to another Partnership or S-Corporation?

There aren't direct inputs specifically for distributions on the Passthrough K-1's screen in the S-Corporate or Partnership returns. You'll need to enter distributions from another passthrough entity in the input screen where you'd report distributions from the entity itself.

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