qbi safe harbor statement no not showing all properties

Just talked with to Lacerte and no known answer or reason. I have one with 5 properties and none show on election statement. One with 50 rentals and most show.

I had to go to misc elections and type in every property that was not showing up not fun this late in the game. Everything was marked correctly just not pulling all properties. Looks like a night working on rentals 

michele

Answer

There are one input to indicate that the rental activity is eligible for QBI and there is another input to trigger the safe harbor statement to be printed for that particular activity.  You may want to double check the following for each rental activity:

  • QBI Eligibility: Screen 18, Qualified Business Income Deduction section, Business is a qualified trade or business: 1=yes, 2=no [O] should have 1 entered; and
  • Safe Harbor Statement: Screen 18, Qualified Business Income Deduction section, Claiming safe harbor on rental real estate per IRS Notice 2019-07 should be checked but only for one rental activity within the properties being grouped under Section 3.02.

Unfortunately, Lacerte/PTO has no functionality to consolidate these various rental activities on a single safe harbor statement.  You will need to edit it to list the other rental properties within that rental real estate enterprise and I would include a simple statement that says something along the line of "these rental properties are treated as one rental real estate enterprise by the taxpayer(s) pursuant to Section 3.02 of Notice 2019-07."

You may not want to use the Misc Election function to create the statement since it is not a robust editor, the Misc Election you create will be including with the e-filing as is without signature (which shouldn't be the case), and you will need to get your client to sign the statement in the end.  If you would prefer not to edit the stock statement from Lacerete/PTO, you are better off not checking the box for the statement at all and creating one using a word processor of your choice.

Once your client has signed the statement in wet ink, you can then attach it as a PDF to the return on Screen 4.4 and link it to QBI Rental Real Estate Safe Harbor Election Statement under Other.

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