1041-US: Special allowance for rental real estate activities with active participation (FAQ)

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

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


Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.

Question

Is the special allowance for rental real estate activities with active participation allowed for fiduciary returns?

Answer

The special allowance is not applicable to trust returns. A critical diagnostic message displays if the designation is for an activity.

The special allowance is applicable to decedent's estate returns for the first two years of the estate's existence, just like an individual return. On Screen Rent-2, K1-3, or K1T-2, enter 2 in the Passive activity code field to indicate the activity is rental real estate with active participation. Also, on Screen OthInfo enter the amount of the $25,000 allowance, if any, that the surviving spouse will use in the current year.

Related topic: 1041-US: Passive loss information FAQs

Share This