safe harbor for 1040NR rental property

Technical topics regarding tax preparation.
#1
Keyad22  
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1209
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13-Jun-2016 9:51am
Location:
Bay Area, California
Taxpayer (NRA) insisted to take QBI deduction for his single rental property. I don't think he qualifies.

However, safe harbor rule says TP or RPE perform 250 hours. Should I got his agent's statements to prove the agent did 250 hours work for the rental activity? I want to.

Would you like to attach the statement PDF signed by RPE when you are efiling tax returns for NRA?

Someone says tax preparer keeps the statements for recording only. Some TP just say it is a lot of work for rental. Just make it a trade or business.

What would you do?
 

#2
sjrcpa  
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6477
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23-Apr-2014 5:27pm
Location:
Maryland
Taxpayer does not need the safe harbor to qualify for QBI deduction. What makes you think this rental does not qualify?
 

#3
Posts:
195
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21-Feb-2015 9:44am
Location:
College Station, TX
My understanding is that the taxpayer is required to keep contemporaneous records to prove he meets the safe harbor. I would ask to see the his records. The 250 hour requirement is a high bar for a single property owner so I don’t see many such rental property owners qualifying for QBI.
 

#4
HowardS  
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2820
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21-Apr-2014 3:12pm
Location:
Southern Pines, NC
The safe harbor is an option, not a requirement for classifying a rental as a T or B.
Emphasize the 1099 requirement for a T or B that isn't a requirement for an investment property.

It's the client's decision. Note your objection in your files. There will be so many of these questionable classifications the IRS will be totally overwhelmed and pay no attention.
Retired, no salvage value.
 


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