QBID for Rental property with a loss

[Toobusy]

My client has rental property which incurred a loss 2018 (as it has each year). I was prevented from e-filing her return due to the following message: " This return is not ready for e-filing. Your return indicates that you may qualify for a new qualified business income deduction (QBID). However, some of the calculations are still being developed in the tax software due to the recent release of the section 199A final regulations. Once the calculations are finalized, a program update will be available to e-file your return (approximately Feb 26, 2019)". Although the calculation for the form is not ready now, I reviewed the form, and my calculation indicates that her qualified business deductions is going to be zero since she has a loss of over $7,000. She getting a nice size refund, and its a shame she has to wait until the 26th to e-file, since she won't be getting the QBID anyway. Has anyone else had this problem?

[spanel]

Nope. Time to look for a new software? Who are you using??

Chris

[AZUKHiker]

If you don't think it is QBI there should be a check box in your software where you can say that rental is not QBI. Of course of you decide that this rental is not QBI you will need to be consistent from year to year.

If you do think it is QBI then you will have to wait to e-file the return.

[TaxGuyBill]

You first need to confirm if the rental qualified for QBI or not.

If it does qualify for QBI and the taxpayer has other businesses, you need to wait.

If it does qualify for QBI and the taxpayer does NOT have any other businesses, then the work-around would be to tell the software it does NOT qualify for QBI, then manually enter the QBI loss carryover into next year's tax return.

[Burke]

If it does qualify for QBI and the taxpayer does NOT have any other businesses, then the work-around would be to tell the software it does NOT qualify for QBI, then manually enter the QBI loss carryover into next year's tax return.

That might get around the problem of later filing, but what if the client goes elsewhere next year? They would need the QBI worksheet showing the calculation carry/forward to present to a new preparer. So that would have to be part of the client's package. And if the OP only provided an electronic copy, it wouldn't be there.

[spanel]

Chances are very few ppl with "a" rental property quality for QBI anyway, so its kind of a mute point.

Chris