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CHM93
Returning Member

199A for Partnership that self rents 75% of property

My Partnership (all commercial real estate) rents 75% of the property to a related party that operates a restaurant.  Can I allocate expenses 75%/25% and take the QBI for the income and expenses attributable to 75% of property rented to a related party?  In this case the 25% was vacant for the majority of the year so that portion of the property operated at a loss when expenses were allocated on square footage.  Can the QBI be greater than the net income from the property for the year?

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2 Replies

199A for Partnership that self rents 75% of property

Was it rented at FMV to this related party?

CHM93
Returning Member

199A for Partnership that self rents 75% of property

yes, thanks!

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