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Level 1
July 10, 2020

QBI for rental property

  • July 10, 2020
  • 1 reply
  • 11 views

Is there an definitive method of identifying whether a rental property would qualify for the QBI deduction?  Self managed.  Commercial properties.  Doesn't require 250 hours to manage. 

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    1 reply

    Level 3
    July 10, 2020

    Unfortunately, there is no definitive method to identifying whether a rental property would qualify for the QBI deduction. The only IRS guidance is that the property must qualify as a Section 162 Business. Specifically it must be regular and continuous and be operated with a profit motive. The IRS has issued safe harbor rules for a rental property, but those require 250 or more hours of rental service performed for the property.

    Michael D