Screen Rent-2 - Rent and Royalty Properties - Passive Activity Information (1120)

General Information

  • If you enter passive carryovers from entities coded 3, the application considers them to be former passive activities. Income and losses from former passive activities are reported as follows:
    • If the current-year net income is less than the prior-year suspended losses, both prior-year suspended losses and current-year net income are reported on Form 8810.
    • If the current-year net income is equal to or greater than the prior-year suspended losses, neither amount is reported on Form 8810.
    • If there is a current-year net loss, only the prior-year suspended losses are reported on Form 8810.
If you are aggregating this activity, enter the aggregation group number in this field. Units with the same aggregation number are reported as one item in the statement worksheets for Form 8810. All of the entities in an aggregation must have the same passive code. You cannot aggregate non-passive activities (code 3) if any of them have prior-year disallowed amounts.
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