Here is the answer. First, rental properties are unique and must specifically indicate if they believe they fit the criteria for using the qualified business income deduction (QBID) for their specific rental activity. More information is provided below.
In your 2019 TurboTax file look for any worksheets labeled Carryover (8995 worksheets specifically). It be me the same figure you see listed under 2018 you indicate above.
The IRS finalized the safe harbor rules for rental properties. Do you meet the requirements?
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:
- Separate books and records are maintained to reflect income and expenses for each rental real estate enterprise.
- 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.
- 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.
- The taxpayer or RPE attaches a statement to the return filed for the tax year(s) the safe harbor is relied upon.
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 >
- Select 'None of the above' on the Real Estate Professional page
- Continue to the page Do you want to use a safe harbor.... make your selection > Continue
- Select your answer again', on the page Is this Qualified Business Income?
To include your QBID carryforward loss so that it is not lost you can use the steps below.
- TurboTax CD/Download or TurboTax Online
- Business Income and Expenses > Less Common Business Situations > Net Operating Loss/QBI Carryforward Loss
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
