I'm sorry but I must not be asking clearly enough. Does the 250 hour safe harbor test have to be made at the entity level for each LLC/partnership or can the rental income be passed through for all entities and an election be made on the Form 1040 to combine the properties and meet the 250 hour test at the individual level.   The regs. and procedures are not clear. If it can be made at the individual level how do I get Lacerte to combine them for the election?  

I understand QBI can pass-through from each partnership. My question is can I elect to combine the K-1 income from each partnership for the safe harbor election on the Form 1040? When I read the rev proc and guidance it is confusing whether these are RPE's that can be combined. I also cannot find anywhere on Lacerte input for electing to combine from K-1's.  There is an election to combine rentals from Sch E but no where do i see a place to elect to combine from my K-1's

Ii don't think that's my question.  If I enter a negative $300,000 on Sch C and have a negative AGI the diagnostic goes away.  It recognize that I have a 1099R with $125,000 gross and $25,000 withholding and have a negative AGI and thinks everything is find.  Which it always has been in prior year. My negative $300,000 is coming from a net operating loss from a Form 1041.  Then I get this message.  The diagnostic says income categories.  Somehow the program is differentiating between a net loss from Sch C and from Sch K-1 for the same type of loss. There should be a way around this.  

Thanks everyone.  I think I'll just put a letter in.  The misc. deductions lists overlaps 2 pages, one I need, the other I don't.  I never gave consideration that other states were different.  Guess I better start getting my "individual tax return" mode brain going again.

I'm not asking about state tax deductions.  I want all state tax, property tax, mortgage interest, medical and charitable listed by my clients.  I just don't want them to have to gather investment advisor fees, tax prep costs, mileage for employee travel, etc. since it will be a lot of work for them and then I have to tell them we can't use it anyway.  So, I want all the schedule A info on my organizers, except I want to remove the misc. deduction section.  I can't see a way I can modify that part of the organizer myself.