Question: Will you add a canned statement to individual returns pertaining to the Safe Harbor requirements of Notice 2019-07 pertaining to Section 199A and real estate?

[sjarviscpa]

There is specific language in IRS Notice 2019-07 Section 3.06 requiring a statement for taxpayers claiming the deduction for rental real estate.

[rbynaker · Accepted solution]

There's been much debate on this (and not just with Intuit products).

My opinion (at this point, which could easily change if/when more information comes to light):  Make your own.  Print it, get it signed, scan it as a PDF and attach to an efiled return.  The IRS came out with this reg AFTER they came out with the 2018 efile schema, so I'm guessing there's both a learning curve and a programming delay in play.  Personally, I'll hold off until we get more info (or at least until there's some consensus among professionals and/or software providers).  But if I absolutely had to file one of these right now, I'd make sure I had ink on paper.  There's potentially too much at stake to screw this up in the first year.

Same thing with the aggregation rules.  The regs are fairly specific when it comes to disclosure.

Rick

[itonewbie]

Delete. Didn't notice this is related to a different tax product.

[itonewbie]

@Charlene_At_Intuit @Ashley at Intuit (aka Henry Jr) Would you be able to confirm?  A similar question has been raised about Lacerte and it is being checked on as well.  Thanks!

[MrMojo]

Notice 2019-07

".06 Procedural requirements for application of safe harbor. A taxpayer or RPE must include a statement attached to the return on which it claims the section 199A deduction or passes through section 199A information that the requirements in Section 3.03 of this revenue procedure have been satisfied.

The statement must be signed by the taxpayer, or an authorized representative of an eligible taxpayer or RPE, which states: “Under penalties of perjury, I (we) declare that I (we) have examined the statement, and, to the best of my (our) knowledge and belief, the statement contains all the relevant facts relating to the revenue procedure, and such facts are true, correct, and complete.”
The individual or individuals who sign "must" have personal knowledge of the facts and circumstances related to the statement."

ProSeries does Not include a 199A statement for the Safe Harbor for rental properties.
Tax preparers will have to include a separate statement to be attached to the return, efiled or paper filed.