DMarkM1
Expert Alumni

Get your taxes done using TurboTax

Yes, for the safe harbor Qualified Business Income Deduction you can group all seven, since there is an interest in all seven, into one enterprise.  Also there will be no problem not including a property in later years since the safe harbor election is an annual election.  If you dispose of your interest in a property it will no longer be on your return and thus not in the enterprise. 

 

One note, if you add similar rental properties to your inventory and you have elected to group properties for the safe harbor, the newly acquired properties are automatically part of the group.  Once you elect to group properties you must continue to group in future years. 

 

You are also correct in your interpretation of Amyc's comment.  You would enter each property with 5 being 100% yours (you and spouse) and 2 being only 50% yours (spouse). 

 

However, when entering your income and expenses for those 2 properties, you have the option to enter your actual numbers for those items.  The other party (son) would enter his share of income/expenses on his return as (if) applicable.  The percentage only comes into play if you want to enter the total amounts and have TurboTax do the math for your share on your return.  

 

Here is a link to the IRS revenue procedure for more information.

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