The reason for the safe harbor is to allow certain interests in rental real estate, including interests in mixed-use property, to be treated as a trade or business for purposes of the qualified business income deduction under section 199A of the Internal Revenue Code (section 199A deduction). Some users have reported a rental safe harbor election statement in their tax file even after they do not elect the QBI rental activity safe harbor choice. If you don't think you need it, then you can remove the safe harbor election statement and proceed to e-file your return (since you are correct, TurboTax can't e-file your return with the safe harbor election).
Here is a link to the IRS regarding safe harbor and the QBI deduction.
Here is how to delete a form:
How do I view and delete forms in TurboTax Online?
- Open or continue your return in TurboTax.
- In the left menu, select Tax Tools and then Tools.
- In the pop-up window Tool Center, choose Delete a form.
- Select Delete next to the form/schedule/worksheet in the list and follow the instructions.
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