1120-US: Renting to a nonpassive activity (FAQ)

Alerts and notices
Leave feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.

Characters left:


How do I indicate in UltraTax/1120 I am renting to a nonpassive activity?


If there is a rental of property to a nonpassive activity, certain income may be recharacterized and excluded from passive activity income. Publication 925, Passive Activity and At-Risk Rules contain instructions on how to report income/loss from such activities.

To indicate the activity is to be recharacterized, enter X in the Subject to recharacterization rules checkbox in Screen Rent-2. UltraTax CS uses the recharacterization rules for the activity.

Related topics

Share This