The "NPA" text (to indicate "Not a passive activity") and an amount will appear below Line 26 on Schedule E (Form 1040) Supplemental Income and Loss if the selection is made in the TaxAct^® program to indicate this is a nonpassive activity.

To make this selection:

1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
2. Click Rent or Royalty Income in the Federal Quick Q&A Topics menu to expand, then click Real estate rental income.
3. Click + Add Schedule E, Pg 1 to create a new copy of the form or click Edit to review a form already created.
4. Continue with the interview process to enter all of the appropriate information.
5. On the screen titled Rental Income - Passive Activity, review the information (and the Form Instructions available on the right, if necessary to correctly answer the question).

If the selection is made to indicate this is a nonpassive activity, then the "NPA" text will appear on Schedule E when you print or print preview the return. While the text will appear on the printed (or print previewed) form, it is not visible on the screen view of the form (only available to users of the Desktop version of the program).

Note. In the Desktop program the same will happen if the selection is made at the top of Schedule E to indicate the property is not considered to be a passive activity.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.