Follow these steps to mark that an activity has made an election under 163(j)(7)(B) of (C). This only applies for tax years 2018 and later.

1. Open the desired client and, if necessary, click an activity folder.
2. Choose Setup > Activities.
3. Select the correct Form / Schedule then click Edit.
4. Select the correct tax year in the Election under 163(j)(7)(B) or (C) field.
5. Verify that the Type of trade or business field has the correct value.

   Note: This field defaults to Real property trade or business for all activities except for Farm and Farm Rent activities.

6. Click Enter.
7. Click Done.

This field is left blank by default, and is only available for the following entities/activities.

• 1040 - Business, Bus COGS, Rental, Farm, Farm Rent
• 1041 - Business, Bus COGS, Rental, Farm, Sch K-1
• 1120C - Business, COGS, Farm, Farm Rent, Rental
• 1120S - Business, COGS, Farm, Farm Rent, Rental
• 1065 - Business, COGS, Farm, Farm Rent, Rental
• 990 - OP, OP COGS, Rental

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