@BarbaraW22 Thanks for your reply, so when Turbotax attempts to apply QBI deductions on the rental properties. it doesn't apply/consider safe harbor (Notice 2019-07), and I noticed there are another options available per IRS. which one does TurboTax implement?
https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-i...
Q48. When is rental real estate treated as a trade or business for purposes of determining the QBI deduction?
A48. Rental real estate is treated as a trade or business for purposes of the QBI deduction under section 199A if it meets any of the following three tests:
- The rental real estate rises to the level of a section 162 trade or business.
- The rental real estate is a rental real estate enterprise meeting the requirements of the safe harbor provided in Revenue Procedure 2019-38. See Q49.
- The rental or licensing of property is to a commonly controlled trade or business operated by an individual or a passthrough entity as described in Treas. Reg. § 1.199A-1(b)(14). This is often referred to as a self-rental.
