Pacun Posted April 11, 2010 Report Share Posted April 11, 2010 Executor (wife) was active participating on rental before death and continued after death. I am filing 1041 and my question is: Can the estate check "active participation"? The Estate only existed for 10 months within the same year. If I don't click on active participation, the loss is reported ONLY on the K1 line 14. If I click on active participation, I get a loss on 1041 line 5 (rental, sch E) and K-1 reports a loss distribution on line 11 with code D. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 11, 2010 Report Share Posted April 11, 2010 yes Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 12, 2010 Author Report Share Posted April 12, 2010 Thank you. Quote Link to comment Share on other sites More sharing options...
jainen Posted April 12, 2010 Report Share Posted April 12, 2010 >>Can the estate check "active participation"?<< According to Pub 925 at My link, "Only individuals can actively participate in rental real estate activities. However, a decedent's estate is treated as actively participating for its tax years ending less than 2 years after the decedent's death, if the decedent would have satisfied the active participation requirement for the activity for the tax year the decedent died." Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 13, 2010 Report Share Posted April 13, 2010 >>Can the estate check "active participation"?<< According to Pub 925 at My link, "Only individuals can actively participate in rental real estate activities. However, a decedent's estate is treated as actively participating for its tax years ending less than 2 years after the decedent's death, if the decedent would have satisfied the active participation requirement for the activity for the tax year the decedent died." Your answer is better than my simple YES! how do you have the time to be so helpfull? hope your season was prosperous Quote Link to comment Share on other sites More sharing options...
jainen Posted April 13, 2010 Report Share Posted April 13, 2010 >>how do you have the time to be so helpfull?<< My link Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 13, 2010 Author Report Share Posted April 13, 2010 Thank you both for your answers. Quote Link to comment Share on other sites More sharing options...
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