ESTATE WITH RENTAL INCOME

[Pacun]

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.

[michaelmars]

yes

[Pacun]

Thank you.

[jainen]

>>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."

[michaelmars]

>>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

[jainen]

>>how do you have the time to be so helpfull?<<

My link

[Pacun]

Thank you both for your answers.