Rent to a nonpassive activity

If there's 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 the
Rent-2
screen. UltraTax CS uses the recharacterization rules for the activity.
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