I cannot seem to delete the form 8995 that triggers a qbi on rental real estate that I do NOT spend 250 hours on

[ThomasM125 · Accepted solution]

You may be able to claim the qualified business income (QBI) deduction even if you don't spend 250 hours in services during the year on your rental property. That qualification only applies if you are trying to qualify for the safe harbor election, but it is not necessary if the rental is carried on with regularity, continuity and you have a profit motive.

If you still don't want to take the QBI deduction, you need to go back through your rental entries and towards the end of the routine, you will see a screen that says Is this Qualified Business Income? on which you can answer "no" and that may remove the form 8995 from your program.

You also need to keep in mind that the QBI deduction can appear based on carryovers form previous years and also income reported on a schedule K. So it is possible that you have form 8995 in your program for reasons separate from your current year rental activity.