Turbotax software generates a form Section 199A ¨Rental Real Estate Safe Harbor Statement¨ On the bottom it only asks for name & date. Does it need to be signed also?

[taxsaver]

I am claiming QBI on rental properties.

[ColeenD3 · Accepted solution]

No. When you sign your tax return, that is sufficient.

This election for building improvements is called the Safe Harbor Election for Small Taxpayers. If you decide to take this option, a form called Safe Harbor Election for Small Taxpayers will show up in your tax return. This election will apply to all your businesses, rental properties or farms.

[taxsaver]

Thanks for the reply. If this is the only signature needed, why couldn't I e-file then??

[PattiF]

Your signature is electronic---it is your 2019 AGI or PIN.

There is never a physical "signature" on an e-filed return.   If you are asked for a "signed" copy by a lender, etc. someday, you take out a pen and sign it to keep them happy.

You will be able to e-file. 

[drejo1985]

When this form populates, it is saying the tax return must be mailed and cannot be filed electronically.

[JeffreyR77 · Accepted solution]

This is correct.  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.
• The taxpayer attaches a statement to the return filed for the tax year(s) the safe harbor is relied upon.

TurboTax does not have the ability to attach this statement.  If you choose to elect the Safe Harbor, you will need to print, attach your statement and mail your return.

Rental Real Estate Safe Harbor Qualification as a Business for Qualified Business Income Deduction

[taxsaver]

Yes, I agree. Thanks for confirming..