Group passive activities
Refer to Publication 925 and Form 8582 instructions to determine the treatment of passive activities and which activities you can group together.
You may be able to group passive activities together and group a non-passive activity with a passive activity. You'll need to enter passive information in the correct screen:
- For Schedule C, use theC-3screen.
- For Schedule E, page 1, use theRent-2screen.
- For Schedule E, page 2, part II, use theK1-7screen.
- For Schedule E, page 2, part III, use theK1T-3screen.
- For Schedule F, use theF-3screen.
- For Form 4835, use the4835-2screen.
- To group passive activities together under Revenue Procedure 2010–13:
- Go to the passive activity information section for the activity you need to group.
- Use theAggregation groupin each activity.
- Enter theGroup disclosureto specify the type of grouping for the disclosure statement.noteThe group number and passive activity code need to be the same in each grouped activity. Activities in the group will be combined as 1 aggregate activity on Form 8582. UltraTax CS will create the group disclosure statement and summary statement of activities in the group.
- If the activity is a significant participation activity, enter theSignificant participation hoursfor each activity in the group.
- To group a non-passive activity with a passive activity:
- Use theReg. 1.469-4(d)(1) group.
- Select theGroup disclosure codein the passive activity information.
note- The Group Disclosure Statement is produced for the grouping of a rental activity with a non-passive activity.
- If the entire group is non-passive for reporting purposes, you'll need to give each activity a passive activity code that's non-passive. The group won't be reported on Form 8582.
- If you group activities using theReg. 1.469-4(d)(1) group, leaveaggregation groupempty for the activity.
