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alexlws2
Returning Member

199A Rental Real Estate Safe Harbor Statement (last page CA returns)

Working on the 2019 Turbo Tax Premier edition for Rental Property (I am an Owner with only 1 property for rental through a Property Management company in California),  to the question "Do you want to use a Safe Harbor to qualify the property for a deduction, I answered "None of the these apply".   To the question "Is this Qualified Business Income" ?  I answered "Yes, this income is QBI".    I had then Submitted to e-File Federal return, and then printed out the CA return for mail filing when I found on the last page "199A Rental Real Estate Safe Harbor Statement" asking me to sign and declare under penalty of perjury.  I cannot sign this as "The property was not used as a residence for any part of the year" in untrue ;  my wife/I had use the property as residence during part of 2019.

Q1.  Why is it forcing me to sign this page when I already answered "no" earlier to Safe Harbor Question" ?

Q2.  I then went back to Turbo Tax and chosed "No this income is not qualified (as QBI)", re-generate the CA forms for manual filing and again this "199A Rental Real Estate Safe Harbor Statement" appeared requiring me to sign under penalty perjury.  There is no way we could sign a form.

Q3.  Why does this form appear, and what do we need to do to not have this form to sign ? 

We are waiting your answer (today is 10/11/2020) before we file the California taxes.

Please advise.

 
 

 

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1 Reply
alexlws2
Returning Member

199A Rental Real Estate Safe Harbor Statement (last page CA returns)

This is continuation of the Original posts. Here are the full statements of that page that concerns me.

 

Tax Year: 2019
This statement confirms that all requirements for the safe harbor per IRS Notice 2019-07 have been
satisfied to claim this rental real estate for the Qualified Business Income (QBI) deduction.
Specifically I affirm all of the below:


. Separate books and records are maintained to reflect income and expenses for each rental property
. 250 or more hours of rental services were performed with respect to the rental enterprise
. The property was not used as a residence for any part of the year
. The property was not rented or leased under a triple net lease


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.


Name      Date

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