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Level 1
December 7, 2019
Solved

QBI deduction signed statement as it relates to Rental Real Estate

  • December 7, 2019
  • 1 reply
  • 18 views

In order to take Section 199A QBI deduction for Rental Real Estate, the IRS states that the taxpayer must attach a signed statement to the return, stating they meet the requirements. I dont see anything like this in place. Is Lacerte going to include something like this? 

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Best answer by TaxMonkey

That is not true.  You do not need to attached a signed statement to the return in order to claim a QBI deduction.


I believe what you are referring to is the safe harbor statement found in Notice 2019-17.  It is not required to meet the safe harbor requirements to claim QBI, as is clearly stated in the notice. I doubt anything has been directly implemented yet, you would prepare your own statement and attached it as a pdf.  The requirements an be found on page 9 of Notice 2019-17:


https://www.irs.gov/pub/irs-drop/n-19-07.pdf

1 reply

TaxMonkeyAnswer
Level 7
December 7, 2019

That is not true.  You do not need to attached a signed statement to the return in order to claim a QBI deduction.


I believe what you are referring to is the safe harbor statement found in Notice 2019-17.  It is not required to meet the safe harbor requirements to claim QBI, as is clearly stated in the notice. I doubt anything has been directly implemented yet, you would prepare your own statement and attached it as a pdf.  The requirements an be found on page 9 of Notice 2019-17:


https://www.irs.gov/pub/irs-drop/n-19-07.pdf

George4Tacks
Level 15
December 7, 2019
So other do not need to look it up, here goes:
".06 Procedural requirements for application of safe harbor. A taxpayer or RPE must include a statement attached to the return on which it claims the section 199A deduction or passes through section 199A information that the requirements in Section 3.03 of this revenue procedure have been satisfied. The statement must be signed by the taxpayer, or an authorized representative of an eligible taxpayer or RPE, which states: “Under penalties of perjury, I (we) declare that I (we) have examined the statement, and, to the best of my (our) knowledge and belief, the statement contains all the relevant facts relating to the revenue procedure, and such facts are true, correct,
and complete.” The individual or individuals who sign must have personal knowledge of the facts and circumstances related to the statement. "

@TaxMonkey Could the election added in screen 46 "Other Election" and the signature of the tax return would qualify as a signature for the election?
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