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New Member
posted Jun 1, 2019 12:42:15 AM

My State is questioning the fact that I claimed a loss from rental real estate and advise that generally these losses are considered as passive losses.

To help substantiate my claim they are asking that I provide a copy of the election to group my rentals as 1 activity. Where can I find this into on TurboTax. This is for the 2014 filing

0 2 2024
1 Best answer
New Member
Jun 1, 2019 12:42:19 AM

Treasury Regulation § 1.469-9(g) requires a taxpayer to file a written statement and attach it to an original return.  This election cannot be made on an amended return or during an audit!

You have the burden of proving that you are involved in a real estate trade or business. 

A taxpayer makes the election to treat all interests in rental real estate as a single rental real estate activity by filing a statement with the taxpayer's original income tax return declaring that the election is under section 469(c)(7)(A)," the Court stated. "A taxpayer has not made an election if it is not clear from the return that an election has been made.

You must "clearly notify" the IRS of your intent to make an election.

The IRS released Rev. Proc. 2010-13, effective for tax years beginning on or after Jan. 25, 2010. Taxpayers must now attach a statement to their original tax return for certain tax years in which multiple activities are grouped as a single activity for purposes of Sec. 469. This disclosure enables the IRS to know when a grouping strategy has been employed so it can assess the appropriateness of the grouping and monitor it in future periods for consistency.

2 Replies
New Member
Jun 1, 2019 12:42:17 AM

So where in Turbotax do you file this election?

New Member
Jun 1, 2019 12:42:19 AM

Treasury Regulation § 1.469-9(g) requires a taxpayer to file a written statement and attach it to an original return.  This election cannot be made on an amended return or during an audit!

You have the burden of proving that you are involved in a real estate trade or business. 

A taxpayer makes the election to treat all interests in rental real estate as a single rental real estate activity by filing a statement with the taxpayer's original income tax return declaring that the election is under section 469(c)(7)(A)," the Court stated. "A taxpayer has not made an election if it is not clear from the return that an election has been made.

You must "clearly notify" the IRS of your intent to make an election.

The IRS released Rev. Proc. 2010-13, effective for tax years beginning on or after Jan. 25, 2010. Taxpayers must now attach a statement to their original tax return for certain tax years in which multiple activities are grouped as a single activity for purposes of Sec. 469. This disclosure enables the IRS to know when a grouping strategy has been employed so it can assess the appropriateness of the grouping and monitor it in future periods for consistency.