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JoanAnt
Returning Member

Rentals Real Estate Professional with Material Participation Turbo Tax Issues

Issues:

  • 199As:  cannot delete four items (one for each rental I have)
  • QBI Components and Summary:  cannot delete them
  • Form 8995:  cannot delete
  • RREE Statements:  cannot delete
  • Schedule E Worksheet:  cannot remove checkbox that it is part of a real estate enterprise
  • For QBI Safe Harbor, I check the "yes" for only a particular rental, I do not check for enterprise

I have spent hours with the help desk on 2 occasions to no avail.  I do not want to aggregate my 4 rentals into an enterprise, but I cannot seem to undo this issue.  Please advise next steps or how to get to a higher level of support.

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3 Replies

Rentals Real Estate Professional with Material Participation Turbo Tax Issues

Are you using a desktop product? Have you tried Forms Mode?

Rentals Real Estate Professional with Material Participation Turbo Tax Issues

not exactly sure what you are trying to do regarding 199A and the passive activity rules regarding each of the 4 properties. please see this link for determining material participation. 

https://boulaygroup.com/material-participation-in-rental-activities-as-a-real-estate-professional/#:... 

if you do not elect to treat all properties as one activity you must meet 1 of the 7 material participation tests for each of the properties. This is true even for REPs. 

 

 

to be a real estate professional 1) more than 50% of your personal services during the tax year are performed in real property trades or business in which you materially participate and 2) you spend more than 7502 hours of service during the year in real property trades or business in which you materially participate 

 

 

  • 199As:  cannot delete four items (one for each rental I have) - not sure what you are referring to
  • QBI Components and Summary:  cannot delete them - there is one component worksheet for each property (enterprise) if the are 4 are not being aggregated you will see 4 component worksheets. if the 4 were aggregated you will see only one and they will probably be indicated as enterprise #1
  • Form 8995:  cannot delete - there is no reason it should be. this is the tax form where the QBI computation is done so it's required. 
  • RREE Statements:  cannot delete - this is from checking the safe harbor for that one property. read what it says. you should only see only that one property listed on the statement. see this link for rev proc 2019-38 which is the safe harbor proc and refers to the rental activities as an enterprise so an enterprise can evidently consist of only one property. https://www.irs.gov/pub/irs-drop/rp-19-38.pdf    checking the safe harbor election is what checks the next item
  • Schedule E Worksheet:  cannot remove checkbox that it is part of a real estate enterprise
  • For QBI Safe Harbor, I check the "yes" for only a particular rental, I do not check for enterprise

 

JoanAnt
Returning Member

Rentals Real Estate Professional with Material Participation Turbo Tax Issues

Thank you very much.  For each rental, I first went through and marked each one as separate to clear any inconsistencies.  Then I went back through each rental created one enterprise and then linked the other rentals to the same enterprise.  Most issues have been resolved.  I will create another post for last remaining issue with Form 8582.  Thanks again.      

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