If you are seeing the Red Alert Error or Omission: Ordinary and Rental Activities on Single Schedule K-1 when reviewing your return, this is due to entering an amount in both the Ordinary business income or loss field for the Schedule K-1 and the Net rental real estate income or loss. This alert includes passive activity losses originating in prior years reported in Box 1 and 2 of Schedule K-1. These two types of income have conflicting calculations because of the recently added Qualified Business Income Deduction; TaxAct requires that you enter the income/loss on two separate K-1's. To move Box 2 amounts to a separate Schedule K-1, please follow these steps:
If the alert is being caused by passive activity losses originating in prior years from Box 1 or 2, these amounts will also need to be reported on a separate Schedule K-1. Please follow these steps: