Self-Rental QBI deduction

Forum|Forum|5 years ago
January 17, 2021
1 reply
18 views

Per the guidance provided by Inuit in this online community, rentals marked as "Self-Rentals" will be included in the QBI deduction calculations. However, I've marked rentals as Self-Rentals in the property type and they do not show up on Form 8995-A.

What other step am I missing? The only thing that seems to work is overriding the program to force the inclusion of this activity in the QBI calculation in the QBI Deduction section (near the bottom of Input screen 18). However, this shouldn't be necessary, per Inuit, as I've properly marked the rental as a Self-Rental.

Lacerte Tax

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Best answer by tedcoxcpa

You still need to put a 1 in the area saying that is a qualified trade or business

T

tedcoxcpaAnswer

Level 2

You still need to put a 1 in the area saying that is a qualified trade or business

jtgcpaAuthor

Level 4

Thank you. This is very helpful, as it's nice to know what others are doing. That's what I ended up doing.

The guidance provided by Intuit, though, indicates that rentals marked as self-rentals will be included in QBI calculations. They never mention that you also need to override the "this business qualifies as a trade or business" input. This begs the question, then, what exactly does denoting the rental as a self-rental do (in relation to QBI calcs)? I don't think it does anything.

T

tedcoxcpa

Level 2

Self-Rental has different rules concerning PALs. It is considered an active rental, so you can't use gains there to offset passive rental losses. Other than that, I am not sure what Lacerte does with it.

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