QBI and but not to include Safe Harbor

[nqju165451]

How do I check if I took QBI but not Safe Harbor? I can't take Safe Harbor. Turbotax is hard to find this. Please help me verified that I have QBI but not Safe Harbor. thanks

[ThomasM125]

I assume you are referring to a rental property. You need to edit your rental entries and when you are done with the income and expense entries, you will come to a screen that says Let's see if you are eligible for the QBI safe harbor. On that screen you can choose the response that says "no I don't or can't (most common)."  You can still take the QBI election by indicating on the next screen that says Is this Qualified Business Income? that you want that choice.

[nqju165451]

How do you verify that I did not take the Safe Harbor and only took the QBI deduction on the tax return or worksheet or on the desktop TurboTax? I want to verify this to make sure TurboTax was filled out  correctly. Thanks 

[nqju165451]

How do you verify that I did not take the Safe Harbor and only took the QBI deduction on the tax return or worksheet or on the desktop TurboTax? I want to verify this to make sure TurboTax was filled out  correctly and Safe Harbor was not included.  Thanks 

[MonikaK1]

If you are using a Desktop version of TurboTax, you can go to Forms Mode (click Forms at the top menu when it is in Step-by-Step or Easy Step mode) and review all of the forms and worksheets that TurboTax has prepared from your entries. Check the Qualified Business Income Deduction Worksheet and related forms.

If you are referring to the 199A Qualified Business Income (QBI) safe harbor, TurboTax will ask if you meet the requirements (e.g., 250+ hours of service) when filling out the QBI section. If you don't meet the requirements or want to decline it, you can select "None of these apply". These are in the follow-up questions that appear after you have entered the rental property, income and expense information and will appear again if you go through the section. There is a specific question, "Let's see if you're eligible for the QBI safe harbor". If you respond that you don't want to take the safe harbor or don't qualify, you may still qualify for the QBI deduction.

IRS rules for electing and qualifying for the safe harbor include the following requirements: 

• 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.

@nqju165451