I have client who owns 4 partnerships. Each partnership owns one or two residential rentals. No one partnership qualifies for safe harbor for QBI.
Can I make an election to combine the income from the K-1's on the Form 1040 to meet the 250 hour test?
If I can, how do I enter and generate the election form with the return?
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
As Susan said - the ENTITY determines whether the activity qualifies for QBI.
The partner doesn't get to make that choice.
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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?