Can a residential rental property and a farm be treated as a combined business.

[tdirkc]

I own a farm in Iowa and a residential rental property in California where I live. Both are 100% owned by me and are both treated as sole proprietorships. Can they be treated as a combined business for the QBI deduction?

[Rick19744 · Accepted solution]

While this forum is not conducive to getting all the facts required for a question of this nature, I will venture to say "no" as I don't believe you can meet the following requirement (which is one of five that must be met):

• The trades or businesses to be aggregated satisfy at least two of the following factors (based on all of the facts and circumstances): 
  • The trades or businesses provide products, property, or services that are the same or customarily offered together;
  • The trades or businesses share facilities or share significant centralized business elements, such as personnel, accounting, legal, manufacturing, purchasing, human resources, or information technology; 
  • The trades or businesses are operated in coordination with, or reliance upon, one or more of the businesses in the aggregated group (for example, supply chain interdependencies).