I have a single rental property in CA (I'm not a resident of CA) which is managed by a local company. TT asked if I wanted to use a Safe Harbor to qualify this property for a deduction. As I understand it, work performed by my management company (agent) would count toward the 250 hours, however, I still wasn't necessarily sure they put in that much work let alone document it. Thus, I did not feel that it applied and marked "None of these apply" (elected NOT to use safe harbor). Next TT screen asked, "Is this Qualified Business Income" and states, "In general, if [US-based, regular, profit motive]....income from this activity is considered QBI". I was comfortable with that statement so I marked "Yes, this income is QBI". I'm now printing my CA (non-resident) return and TT has produced a Section 199A "Rental Real Estate Safe Harbor Statement" where I have to sign under penalties of perjury that all requirements for Safe Harbor have been satisfied to claim this rental for QBI deduction. In the interview I clearly did not elect to use safe harbor. Why is TT producing this document and what happens if I don't sign it and send it with my CA return? I've already electronically filed my federal with the QBI deduction so ...
