How to add rental properties to enterprise for safe harbor?

[MrVette]

When I entered my second residential rental property info it said to be sure to add other properties to the enterprise. But the program gives no clue on how to do this.

I selected safe harbor for the second property as discussed above. Is there a way to undo that?

When I entered the data for the first property it did not ask about the safe harbor or wanting to make it part of the enterprise.

Also I see this IRS safe harbor provision has been in effect for a few years now but do not recall Turbo Tax having any information on it in the past. Did I miss something?

[DianeW777]

The safe harbor was first introduced to clarify the expectation for real estate rentals in early 2019. They are placed here for your convenience.

The IRS finalized the safe harbor rules for rental properties.

This safe harbor is available for taxpayers who seek to claim the section 199A deduction with respect to a "rental real estate enterprise." Solely for purposes of this safe harbor, a rental real estate enterprise is defined as an interest in real property held to generate rental or lease income. It may consist of an interest in a single property or interests in multiple properties. The taxpayer or a relevant passthrough entity (RPE) relying on this revenue procedure must hold each interest directly or through an entity disregarded as an entity separate from its owner, such as a limited liability company with a single member.

The following requirements must be met by taxpayers or RPEs to qualify for this safe harbor:

1. Separate books and records are maintained to reflect income and expenses for each rental real estate enterprise.
2. For rental real estate enterprises that have been in existence less than four years, 250 or more hours of rental services are performed per year. For other rental real estate enterprises, 250 or more hours of rental services are performed in at least three of the past five years.
3. The taxpayer maintains contemporaneous records, including time reports, logs, or similar documents, regarding the following: hours of all services performed; description of all services performed; dates on which such services were performed; and who performed the services.
4. The taxpayer or RPE attaches a statement to the return filed for the tax year(s) the safe harbor is relied upon.
   • Can I get QBID for my rental income?

To change the answer or review your selections you can use the steps below.

• Open your TurboTax return > Search (upper right) type rentals > Press enter > Click the Jump to ... link
• Edit next to your rental activity > Scroll to Qualified Business Income > Edit/Update > Continue to answer the questions
• Do this for each property - make your selection based on your decision considering your facts and circumstances