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Level 4
February 16, 2023

qbid

  • February 16, 2023
  • 1 reply
  • 5 views

Taxpayer is retired, has one rental property, spends little time on it. Sch E sgow a net gain. Is that eligible for QBID?

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1 reply

rbynaker
Level 13
February 16, 2023

Does someone else spend time on it (on behalf of the owner)?

You'll find a spectrum of opinions on this.  Some folks take the position that just about anything qualifies as a trade or business.  The IRS came up with a safe harbor described here:

https://www.journalofaccountancy.com/news/2019/sep/rental-real-estate-safe-harbor-qbi-deduction-201922135.html

I'm somewhere in between.  Probably one property with little involvement doesn't reach the level of trade or business.