MAKING THE SEC. 469(c)(7)(A) ELECTION
A taxpayer makes the election by filing a statement with the taxpayer’s original income tax return for the tax year (Regs. Sec. 1.469-9(g)(3)). This statement should explicitly declare that the taxpayer is a qualifying taxpayer (i.e., the taxpayer meets the requirements to be a real estate professional) for the tax year and is making the election under Sec. 469(c)(7)(A). Once the election is made, it is binding for the tax year in which it is made and for all future years in which the taxpayer is a qualifying taxpayer, even if there are intervening years in which the taxpayer is not a qualifying taxpayer.
A taxpayer can revoke the Sec. 469(c)(7)(A) election only in the tax year in which “a material change in the taxpayer’s facts and circumstances occurs or in a subsequent year in which the facts and circumstances remain materially changed from those in the taxable year for which the election was made” (Regs. Sec. 1.469-9(g)(3)). To do so, the taxpayer must file a statement with the original income tax return for the year of revocation containing a declaration that the taxpayer is revoking the election under Sec. 469(c)(7)(A) and an explanation of the nature of the material change.
Turbotax is terrible when it comes to making certain elections - so yes you'll have to mail your return because there's no way to attach the statement to the electronic file. Turbotax doesn't have it, at least not in the version I'm using.
deciding you no longer want to combine rental activities would not be a material change in your circumstances.
