Recharacterize passive income

Refer to Publication 925 to determine whether you can recharacterize the treatment of income as non-passive.
You'll need to enter passive information on the correct screen:
  • For Schedule C, use the
    C-3
    screen.
  • For Schedule E, page 1, use the
    Rent-2
    screen.
  • For Schedule E, page 2, part II, use the
    K1-7
    screen.
  • For Schedule E, page 2, part III, use the
    K1T-3
    screen.
  • For Schedule F, use the
    F-3
    screen.
  • For Form 4835, use the
    4835-2
    screen.
  1. If the activity isn't part of an aggregation group or a significant participation activity, use the
    Recharacterization of passive income
    dropdown list.
  2. If the activity is a significant participation activity, enter the
    Significant participation hours
    .
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