qbi safe harbor for rentals held by partnerships

Forum|Forum|5 years ago
May 7, 2021
1 reply
11 views

I have client who owns 4 partnerships. Each partnership owns one or two residential rentals. No one partnership qualifies for safe harbor for QBI.

Can I make an election to combine the income from the K-1's on the Form 1040 to meet the 250 hour test?

If I can, how do I enter and generate the election form with the return?

Lacerte Tax

This topic has been closed for replies.

sjrcpa

Level 15

QBI is determined at the partnership level. Not the partner level.

An activity can generate QBI without the 250 hour safe harbor.

The more I know the more I don’t know.

L

LindaSkiAuthor

Level 3

I understand QBI can pass-through from each partnership.

My question is can I elect to combine the K-1 income from each partnership for the safe harbor election on the Form 1040?

When I read the rev proc and guidance it is confusing whether these are RPE's that can be combined.

I also cannot find anywhere on Lacerte input for electing to combine from K-1's. There is an election to combine rentals from Sch E but no where do i see a place to elect to combine from my K-1's

abctax55

Level 15

As Susan said - the ENTITY determines whether the activity qualifies for QBI.

The partner doesn't get to make that choice.

HumanKind... Be Both

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