This is the issue I see in claiming the QBI safe harbor, especially when using a management company. It's logical to assume they would hire whoever is needed to perform repairs, maintenance, and other work on the property. Whether they get the info in note A is unknown. Talk to them to see what they can provide.
Maintain contemporaneous records
The IRS requires you to document services as they occur—the hours, description of services, dates, and who performed the services—not recreating them at the end of the year. Here are some tips to meet this requirement:
- Keep detailed notes for each property or building
- Include dates, type of activity, and time spent (note A)
Attach the annual statement election
To formally elect Safe Harbor treatment, you must attach a statement to your tax return each year, signed by the owner or representative. You can’t elect the Safe Harbor on an amended return unless you have a valid reason for the initial omission.
The statement must include:
- A description (including the address and rental category) of all rental real estate properties included in each RREE.
- A representation that the requirements regarding separate books and records, the 250-hour rule, and contemporaneous records have been met.
- A signature by the taxpayer (or an authorized representative) declaring under penalties of perjury that the statement is true.
Here's an example that I think meets the rule for contemporaneous records. You hire a landscaper for a property. At the end of each month, a bill is submitted with the hours notated.
