Let's say I'm an LP on an real estate syndication LLC that sold its sole property last year, although the LLC itself has not yet dissolved (e.g., this does not warrant a "Final K-1"). I am not a Real Estate Professional and my involvement in this is entirely passive.

The K-1 in this example shows an "Unrecaptured section 1250 gain" on line 9c of $5,000 and subsequently the same for line 10 "Net section 1231 gain". By all accounts, this is passive income according to bothTurboTax and my CPA.

Next up is the "Other income" in line 11i (roughly the proceeds from the sale) of $35,000. There is a note stressing that this is "fully attributable to the sale of business assets" and as a result "is non-portfolio long-term capital gain". In this specific case, is the 11i income of $35,000 passive or not?

This is an example, but it's based on a real K-1. If I enter all this info into TurboTax, then it insists that the 11i income is passive. My CPA disagrees.

The classification of this matters quite a bit since if it's passive, then I can apply my extensive passive losses from other investments to defray it. If it is not, then I pay an addition $12k in taxes.

Let me know if this is not knowable with the info I provided.