Unable to E-file due to QBI Rental Real Estate Safe Harbor Statement

[adegus]

Ok. I thought there was a TTax employee here, but I see now it's just user discussion. We should be complaining to customer service! 

[talaine11]

My return had several of these QBI statements requiring "manual signing" produced when I made a .pdf of the return,   as I have multiple rental homes.  What did not make sense is that these are exact repeated statements and signatures.   They were not consolidated into one statement.

1) Looks like the ball was dropped.  One QBI statement should suffice for multiple properties.

2) I hand edited a all properties into a consolidated QBI statement, printed it out and included it in the mailed return.  It was accepted by the IRS 

3) QBI Form does not clearly show if it needs multiple signatures for joint filing.

4) State returns are blocked from e-filing also when fed has QBI attached.  Why?  

[Carl]

1) I agree. But if you aggregate all properties into a single activity for QBI, then only one statement is generated for each activity. Otherwise, the added programming to "exclude" a duplicate statement would just add to an already over-bloated program as it is.

2) I don't see any issue with that, and obviously the IRS does not either. (At least not yet, but I don't think it's an issue anyway)

3) I'd have all property owners sign it, just to be on the safe side. It's just not that big a deal to me.

4) Don't know. But I do know that you can't e-file a state return until the federal return has been e-filed and accepted by the IRS. That's just the way some states have their e-filing system set up. So if you mail the federal return, you'll have to mail the state return also.  Have no clue how this is dealt with for New York, since that state "requires" the state return to be e-filed.

[Triman]

The process defined by MaryM428 does not work.  I have CD version of Home and Bus.   I unchecked the box and then in he Step-by-Step I changed to election to a No.  The Safe Harbor form still can not be deleted and I still can not e-file.

Unless there is a solution, this is a TurboTax  failure in my opinion.  Every piece of info I see says this is not an IRS forms issue.

[Triman]

This process to remove the Safe Harbor does NOT work.   Using CD version, Home and Bus, 2020.

[DM26]

There is a long thread on this same issue but under the subject:

Unable to efile due to QBI Deduction Worksheet Schedule B

TurboTax did in fact allow attachment of a signed Safe Harbor statement last year with the ability to e-file but it was a very late fix.  

I would not recommend filing without the statement.  In order to take the QBI deduction it has to be a qualified business activity which requires considerable, regular, and continuous activity. Rental activity generally does not qualify as such and has historically been deemed Passive income due to the lack of participation.  The Safe harbor allows an exception to this.

This other thread has a lot more information.

[wheeler1985]

Tax Slayer allows you to print, sign then upload the safe harbor statement.  20+ years using turbotax and this has now got me to go!

https://support.taxslayerpro.com/hc/en-us/articles/[phone number removed]-QBID-Rental-Property-and-E...

[jdddddd]

i posted in the other thread but should have posted it here.

I filed by paper since Turbo Tax would not allow efile. Fed and 3 states. ALL PAPER!

Including filing NY State by mail which says they only accept efile? 

Had no other choice as Turbo Tax would not efile NY since Fed was not efiled.  

What a Huge waste of time and effort. Almost 200 pages. ALL PAPER!

TURBO TAX PLEASE FIX THIS!

Safe Harbor / Rental Real Estate Enterprise Statement (sec 199A) Needs to be electronically fileable.

[cep755]

So when is TurboTax going to support a PDF attachment of a signed safe harbor election?

[HelenC12]

@cep755

The IRS dictates what may be e-filed not TurboTax. The IRS only accepts certain supporting documents be mailed in after a tax return is e-filed. Please see Form 8453 U.S. Individual Income Tax Transmittal for an IRS e-file Return for the supporting documents. 

For additional information, see TurboTax FAQ Do I need to mail anything after I've e-filed?

[cep755]

Last year I had to print out my entire tax return, for TT wouldn't allow me to e-file my return.

Was not allowed to just send in a form.

[jdddddd]

Me too, Had to print and send all tax forms. What a huge waste of time and money. And now the IRS said they Lost my 2018x forms and want me to Resend them, This is Insane.

[Triman]

The extensive history (on these message boards) on this Safe Harbor subject shows that the problem was created by TurboTax and TurboTax has not resolved it. 

It the taxpayer elects Safe Harbor, then taxpayer can not efile through TurboTax; as a result many taxpayers who elected  Safe harbor needed to print their tax return and mail it in

If the taxpayer does not elect Safe Harbor, then taxpayer can efile -- BUT, does not get the benefit of Safe Harbor.

Read the extensive history on many, many prior messages.  Taxpayers were furious...and still are!  

I find it very disconcerting that now someone thinks that there is no problem.

[mmm2019]

For what it's worth... I spoke to a TurboTax support person yesterday.  He messaged the technical support software group, who said to check back in early February to see if TurboTax updates include the ability to attach the Safe Harbor PDF for e-filing.  He said tech support made no promises that it would be available for 2021 returns, but said that they are aware of it and it's on the list of fixes.  Seems like they've had a couple years to fix this so not sure why we're still waiting....  

Would love to know if anyone knows of any tax prep software that does allow e-filing with PDF attachment,  that doesn't require the purchase of a professional version? 

[shmathes]

Yes, I would really like to know if this gets fixed.  Just got the IRS notice saying they received my money but not my return for 2020.  They were mailed together!  Had to resend my tax return two weeks ago which obviously hasn't been processed.  All because I was forced to mail and not efile because of safe harbor.