Re Qualified Business Income Deduction info on a Sch E Worksheet linked to a K-1 limited partnership separate from my rental business do I check the yes box for A and D?

posted

Connect with an expert

1 Best answer

Accepted Solutions

Re Qualified Business Income Deduction info on a Sch E Worksheet linked to a K-1 limited partnership separate from my rental business do I check the yes box for A and D?

Is it a specified trade or business? This explains it quite well:

https://www.bkd.com/sites/default/files/2018-08/Specified-Service-Trade-Business.pdf

Is this a qualified business?

Rental properties are typically treated as passive activities, which are excluded from the definition of a qualified trade or business. However, rentals that qualify as trades or businesses under IRC § 162 are not considered passive, and that means their income can qualify for the QBI deduction.

This article explains which rentals are and are not qualified businesses:

https://ttlc.intuit.com/replies/7122193

View solution in original post

1 Reply

Re Qualified Business Income Deduction info on a Sch E Worksheet linked to a K-1 limited partnership separate from my rental business do I check the yes box for A and D?

Is it a specified trade or business? This explains it quite well:

https://www.bkd.com/sites/default/files/2018-08/Specified-Service-Trade-Business.pdf

Is this a qualified business?

Rental properties are typically treated as passive activities, which are excluded from the definition of a qualified trade or business. However, rentals that qualify as trades or businesses under IRC § 162 are not considered passive, and that means their income can qualify for the QBI deduction.

This article explains which rentals are and are not qualified businesses:

https://ttlc.intuit.com/replies/7122193

Still have questions?