PatriciaV
Employee Tax Expert

Get your taxes done using TurboTax

Note that you have the option to answer "No" to the Safe Harbor question. You will then be asked if your rental is considered a trade or business. If you answer Yes to this question, the rental income will be included in the QBI calculation. 

 

As Expert DanielV01 mentioned, "While the IRS can certainly question any claim regarding QBID, in general, the more "profit-motive" is shown in the enterprise, the more likely that the enterprise will be allowed for the Section 199A deduction. This is especially so with regards to rental income to determine if such rises to the level of a business per Section 162 of the tax code. (The preceding statement is tax advice and not legal advice)."

 

If you decide to use the Safe Harbor election, your best option is to contact the management company and explain what you need. While there may not be a standard name for the report, they should be aware of the IRS requirement to document their work for your rental property.

 

To add the Annual Election Statement to your return, you would need to transfer your TurboTax Online return to TurboTax Desktop. (TurboTax Online does not support creating attachments.) See the instructions here: How do I switch from TurboTax Online to the TurboTax software?

 

Once you have switched to TurboTax Desktop, open your return and click the Forms icon in the TurboTax header. In the left column, click Open Form, then type in "Blank Form." Click on the form to open it in the large window. You can now type in the statement you need to include with your return, per Mike9241's previous post.

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