Form 1040 - How to claim QBI safe harbor on rental real estate per IRS Notice 2019-07 ?

Forum|Forum|6 years ago
February 7, 2020
1 reply
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Hello Community:

There is an article on the ProCommunity that shows how to make a Safe Harbor election for real estate however when I go screen 18 of the software (Lacerte 2019), I am not seeing the option to select "Claiming safe harbor on rental real estate per IRS Notice 2019-07."

Can someone please help?

Many thanks in advance.

KoolDude

Lacerte Tax

This topic has been closed for replies.

Best answer by itonewbie

Assuming you are referring to TY2019, Notice 2019-07 had been made obsolete by Rev. Proc. 2019-38.

The input page has also changed. The box you referred to no longer exists. Instead, enter 1 on the line for Rental real estate enterprise number if claiming safe harbor (unless you have other properties to aggregate). This will trigger Lacerte to generate the statement to be filed with the return.

itonewbieAnswer

Level 15

Assuming you are referring to TY2019, Notice 2019-07 had been made obsolete by Rev. Proc. 2019-38.

The input page has also changed. The box you referred to no longer exists. Instead, enter 1 on the line for Rental real estate enterprise number if claiming safe harbor (unless you have other properties to aggregate). This will trigger Lacerte to generate the statement to be filed with the return.

---------------------------------------------------------------------------------Still an AllStar

S

SBTSAuthor

Level 4

Thank you so much! In case client has multiple properties to aggregate, how should I proceed?

Thanks again very much!

itonewbie

Level 15

NP, @SBTS!

If you are aggregating multiple rental properties, you will use the same number for all of the same rental real estate enterprise. For example, if you are aggregating properties A, C, and D as one enterprise and B and E as another enterprise, you will enter the following on the line for Rental real estate enterprise number if claiming safe harbor under each respective property:

1 for A, C, and D
2 for B and E

Two safe harbor statements will be printed for these enterprises. One for A, C, and D and another for B and E. Each of these safe harbor statements will include another page that lists the properties that are within that particular enterprise.

---------------------------------------------------------------------------------Still an AllStar

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