Answered: K-1 passive v. nonpassive income

chapguy19

Client has 1120-S construction company.

When I import the K-1 into his 1040, if ends up on Sch E, p2, Part II as passive income which it is clearly not.

How do I change this in either the 1040 or the 1120-S?

Thanks in advance,

Christopher

George4Tacks

You betchum there is.

Answers are easy. Questions are hard!

View solution in original post

IRonMaN

In ProSeries there is a box to check on the 1040 K-1 worksheet (fairly close to the top) that will fix that. I assume that there is something similar in ProConnect.

Slava Ukraini!

George4Tacks

What did it import as? 1065 K-1, but it really is a 1120S K-1?

I try very hard to never use import. I have found it to be way more work then just entering the information.

Answers are easy. Questions are hard!

George4Tacks

You betchum there is.

Answers are easy. Questions are hard!

chapguy19

It imported the 1120-S K-1. I've confirmed this from his 1040 Sch E, pg 2.

In ProSeries, you could indicate it wasn't passive. Can't find that option in ProConnect.

IRonMaN

But George found it for you. 😁

Slava Ukraini!

chapguy19

Take the rest of the day off and double your salary.

Much thanks,

Christopher

K-1 passive v. nonpassive income

©1997-2025 Intuit, Inc. All rights reserved.

Intuit, QuickBooks, QB, TurboTax, and Mint are registered trademarks of Intuit, Inc. Terms and conditions, features, support, pricing and service options subject to change without notice.

By accessing and using this page you agree to the Terms and Conditions.