Level 1

Qualified Business Income

Forum|Forum|4 years ago
January 26, 2022
3 replies
9 views

I manage, and partially-own, two family S corps with 53% overlapping ownership. The larger S corp is clearly in the real estate rental business with 30 tenants. The other just has cash but plans to buy a rental property.

Would the single-tenant S corp qualify as a business for purposes of the qualified business income deduction of section 199A? What if it buys a NNN property, then would my involvement in the real estate business combined with the overlapping ownership put the single-tenant S corp in the real estate rental business too? This is like driving in a blinding snowstorm. Tax law sucks!

Section 199A

This topic has been closed for replies.

IRonMaN

Level 15

"Tax law sucks!"

That's why folks that spend their time learning it tend to want to be paid for their services rather than giving their time away for free.

Slava Ukraini!

BobKamman

Level 15

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

qbteachmt

Level 15

"What if it buys a NNN property"

Has no one ever told you and your shareholders about the pitfalls of buying and holding real estate by an S Corp?

It seems you now have another reason to seek out good local guidance, to see if all of that can be fixed.

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