Use of an aggregation code allows passive rent and royalty activities entered on Interview forms to aggregated: 

• This affects the following forms:
• E-1
• K-1
• K-7
• K-9
• IRS-K1(1065)
• IRS-K1(1120S)
• IRS-K1(1041)
• They will be treated as a single unit for the purpose of applying the passive activity loss rules on Form 8582.

Required Entires: 

1. Choose one of the activities to be considered the main activity.
• It does not matter which one.
2. Leave the Aggregation Code blank in the main activity.
3. Enter a code designating the main activity into the Aggregation Code box of each of the other activities to be included in the group.
• The Aggregation Code consists of a prefix followed by the activity number of the main activity.
• The prefix R if the main activity is on an E-1.
• The prefix K if the main activity is a passthrough.

Notes:

• Only passive activities and materially participating real estate professional activities may be aggregated.
•  This includes active rental real estate.
• Nonpassive activities may not be aggregated.
• Every activity included in the group must have the same Classification Code or Activity Code) type.
• As well as the same TSJ coding and FS & State coding.
• The Aggregation Code applies to the passive activity loss rules (Form 8582) only.
• ProSystem does not aggregate for the at-risk rules. Each activity stands on its own merits for At-Risk.
• Results can be seen on the statements behind Form 8582.
• For more information, see our article on this solution in Worksheet View.