Based on my preliminary (and incomplete) testing, it appears that if you have multiple rental properties and on one of them you elect to treat them all (or some) as a single enterprise, the program does not assume other properties are a part of that enterprise.
@GabiU can you provide some guidance here on how to deal with this in the program? In my test, I worked through all rental properties and upon clicking the DONE button is when I was asked about combining my rentals into a single enterprise. Giving the "enterprise" a name is no issue. But I see nothing to indicate that both of my rentals are included in this enterprise. Also, what if I have two residential rentals and one commercial rental? I can only aggregate the two residential properties of course. Does the program handle this?
@Carl wrote:
....what if I have two residential rentals and one commercial rental?
You do not meet the safe harbor requirements for aggregation in that instance.
For purposes of applying this revenue procedure, properties held for the production of rents are similar if they are part of the same rental real estate category. The two types of rental real estate categories for the purpose of combining properties into a single rental real estate enterprise are residential and commercial. Thus, commercial real estate held for the production of rents may only be part of the same enterprise with other commercial real estate, and residential properties may only be part of the same enterprise with other residential properties.
See https://www.irs.gov/pub/irs-drop/rp-19-38.pdf
Can someone help me change the name from "Enterprise #1" to my LLC's name? I can't figure out how to make that change on my Form 8995.