Remove QBI Rental Real Estate Safe Harbor Statement: erroneously selected

Forum|Forum|5 years ago
June 29, 2020
4 replies
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I have searched a lot, and I'm not able to find where I selected QBI initially. I am self-employed and I have a rental property, but it isn't showing up under either. Do I need to start my taxes over? Thanks in advance!

TurboTax Premier Online

Best answer by Anonymous_

You do not need to start your return over. Rather you need to go through the Rental Properties section again and select the proper choice in the QBI screen (see screenshot).

qbi.png

Anonymous_Answer

Employee

You do not need to start your return over. Rather you need to go through the Rental Properties section again and select the proper choice in the QBI screen (see screenshot).

qbi.png

sarawgodwinAuthor

Thanks for the quick reply! I have tried that multiple times, but that screen hasn’t come up again after the first time I selected it. Is there any other way to navigate to that option than to click through the typical way? If so, can you walk me through it step by step? Thanks again!

djay49

I had the same problem. I couldn't delete the Safe Harbor statement in Forms view (it just kept reappearing). So I went back to the beginning of the Rental Property section and clicked through the info, income, and expense questions for the property, and right at the end, after it looked like it was all done, the Safe Harbor question screen appeared and I was able to deselect the option. Hope this works for you!

Ps. On the separate "Is this Qualified Business Income?" screen, you can still select Yes there if your rental activity meets the definition shown ("based in the U.S. and carried on with regularity, continuity, and a profit motive"), which most ordinary rental businesses would.

FAA1

I have 5 rentals. I did not select QBI for any of these incomes, but TurboTax shows one of my rental income as QBI. This generates a 8895 and adds a figure to my taxable income on line 13 of my 1040. Where did Turbo Tax get this erronious information?

TH132

2021 Return: Turbo tax submitted a form 199A Rental Real Estate Safe Harbor Statement. I distinctly recall reviewing this section (contradicting my entry) and answering NO for QBI, so I was surprised to see this statement in my return.

Like reports for 2020 tax year, I was unable, despite over 1/2 hour, to find anyplace thru easy step where I could 'undo' this designation. (I am using the downloaded version of TurboTax on a Mac).

Opening FORMS, Schedule E Wks (worksheet) there is a section called Qualified Business Income Deduction Smart Worksheet. In my return, A1 "Is this activity a qualified trade or business?" is checked NO. The rest of the worksheet is empty except the Schedule A Smart Worksheet.

Active Participant checkbox is properly checked with an "X" based on the turbo tax easy guide. I select tenants, clean and maintain the unit (via Airbnb), but do not spend 250 hours per year in this activity (as needed for the QBI).

To Remove this form, I went to FORMS, then selected the QBI form, then Turbo Tax menu (top menu - on the MAC version this pops up.; on windows it may be there continuously). Click on FORMS, and Remove (form name).

Deleting the QBI form did not change the QBI Deduction Smart Worksheet (part of Sched E Wks) box checked "No."

Turbo Tax? How is this supposed to work?

Need to refile.

DianeW777

There are actually two questions that must be answered, so that TurboTax is clear on your decision about your rental property. First the one about safe harbor and a second question about whether this property qualifies for the qualified business income deduction (QBID).

Open your TurboTax return > Search (upper right) > Type rentals > Press enter > Click the Jump to... link
When you complete the rental property and you are at the summary screen, click 'Done With Rental Property'
Answer the questions on the 'Any Other Situations' screen > Continue > Continue
Select 'None of these apply' on the screen 'Do you want to use a safe harbor to qualify this property for a deduction?'
Select 'No, this income is not qualified, on the screen 'Is this Qualified Business Income?'

Once these steps are completed TurboTax will not allow QBID for this property.

For TurboTax Online the following steps can be used:

Open your TurboTax return > Search (upper right) type rentals > Press enter > Click the Jump to ... link
Edit next to your rental activity > Scroll to Qualified Business Income > Edit/Update >
Select 'None of the above' on the Real Estate Professional page
Continue to the page Do you want to use a safe harbor to qualify this property for a deduction?
Select 'None of these apply' > Continue
Select 'No', on the page Is this Qualified Business Income?

How to amend (change or correct) a return already filed (and accepted at the IRS)
- Review the information here to be sure you need to amend your return.
Steps to amend my 2020 return

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Kimeree

Please Help! I read through what the rest of the posts talked through for this post but my issue is that I did not notice that the QBI Rental Real Estate Safe Harbor Statement & the Section 1.263(a)-1(f) were included before I filed my taxes with the IRS and they were immediately accepted.

I have to say after reading all the other posts that this is an area that TurboTax can improve upon in the future. If so many of the users are impacted by something we indicated as a NO, then there must be a better way to present this information.

My printer is not functioning which is why I did not notice it before filing... quite frankly I looked at the usual 1040 Sch 1 Sch A Sch D and then filed it. Only after going to an alternate source to print it did I realize the situation.

While the dollar amount for this did not impact my overall taxes I DID NOT respond to this in the affirmative which is why I had no idea it was included.

I am concerned that this erroneous inclusion by Turbo Tax may influence an audit or impact future years.

Can I refile to remove those forms when there is no net change to the refund I am receiving?