Form 8995 Rental Real Estate Enterprise and Sec199A Safe Harbor

[Penumbrook]

I have entered multiple Single Family Home Rentals in Schedule E.

When on Sched E, "Qualified Business Income Deduction" screen, I have entered a 1 for "Rental real estate enterprise number if claiming safe harbor" for each property that I want to aggregate.

The program properly shows the aggregated properties on Form 8995, BUT, a critical diagnostics message states, "Schedule E #1 (#2-#6): The Taxpayer claimed the safe harbor election for this rental property. Pursuant to IRS Rev.Proc.2019-38, a statement PDF must be attached..."

This error appears whether or not the "Business is a qualified trade or business" field includes a 1 or is blank.

The file also has an attachment regarding the safe harbor under the electronic filing, PDF/Miscellaneous screen. Removing or adding this PDF does not mitigate the error.

When on Sched E, "Qualified Business Income Deduction" screen, if I remove the number from the "Rental Real Estate Enterprise Number if claiming safe harbor" field, the error is cleared BUT Form 8995 now lists all the properties separately.

What am I missing?
Am I not allowed to aggregate a Rental Real Estate Enterprise AND take the Rev.Proc.2019-38 safe harbor?  Such a result would seem antithetical to the purpose of rp-19-38.

[itonewbie · Accepted solution]

The problem lies with not linking the PDF to the correct form.  On the line for Link to form, you should select 67 = QBI Rental Real Estate Safe Harbor Statement from the dropdown.  The CD will disappear once that's done and the statement will list all the properties with the same identifier.

@IntuitBettyJo @IntuitAustin This issue with this CD was brought up earlier this year.  The message about the statement needing a signature had been removed but it is still asking folks to attach the statement manually even though it should presumably be attached automatically, like any other statement, given there is no longer a need for signature.  Could you confirm whether this CD can be disregarded?  If the statement still needs to be manually attached, is this being looked at by the developer?  Thanks!

[Penumbrook]

Thank you! This solution worked like a charm.

It will be nice to see the day when all these elections can be consolidated into one form with little check boxes.
* Secion 199A QBI Safe Harbor Election
* Section 1.263(a)-1(f) De Minimis Safe Harbor Election and
* Section 1.263(a)-3(h) Safe Harbor Election for Small Taxpayers and
* T.D. 9636, Adoption of a Capitalization Policy