Answered: Sec 199A Self-rental

PMH1403 · ‎03-14-2019

I'm preparing an individual tax return on ProSeries for husband/wife 50/50 owners of an S corp. The husband is the 100% owner of two single-member LLCs, each of which owns a property that is rented to the S corp. Reg Sec 1.199A-1(b)(14) provides that a self-rental can be treated as a trade or business for Sec 199A. Is there an election statement or some form of disclosure for this? Should I include a statement like the one required by the aggregation regs (Reg Sec 1.199A-4(c)(2))? Does ProSeries include an Aggregation disclosure statement? Thank you.

IntuitCharlene · ‎03-14-2019

When you are on the Schedule E Worksheet for ProSeries Self Rental is choice 7 under Property Type. This is up in the General Information right above the address of the rental.

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Intuit_Devin · ‎03-14-2019

Treasury has made no mention of an election statement being required. Since the rental activity is treated as a trade or business by definition, rather than by election, no election statement applies.

PMH1403 · ‎03-14-2019

OK, so all I need to do is check the Yes box for "Is this activity a qual T/B?" in the QBI Deduction Info section of the Sch E worksheet. Correct?

Mort - Skokie · ‎03-14-2019

You should also mark in schedule E "SELF RENTAL"

PMH1403 · ‎03-14-2019

Mort - Skokie ... Is that a Lacerte field? I don't see a Self Rental box on the ProSeries Professional Sch E. Thank you.

IntuitCharlene · ‎03-14-2019

When you are on the Schedule E Worksheet for ProSeries Self Rental is choice 7 under Property Type. This is up in the General Information right above the address of the rental.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Accept as solution" and then just changing the Accept as solution to Mark as Best Answer, mine gets cutoff, so it is too long. I changed mine to the following and it fits. -->**Say "Thanks" by clicking the thumb icon in a post
**Click "Mark as Best Answer " to mark the post that answers your question.

PMH1403 · ‎03-14-2019

Charlene - I see it, thank you!

nejam · ‎04-21-2020

I understood the self-rental provisions under Notice 2019-38 to EXCLUDE the QBI Deduction to a husband & wife that own commercial real estate rental and rents the building to an S-Corp that is 100% owned by the wife?? All other criteria for the safe harbor is satisfied, EXCEPT the self-rental provision? Can someone please chime in on this? Thank you.

Sec 199A Self-rental

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