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posted Jun 6, 2019 1:30:19 AM

Would my farm "cash rent" income(s) being reported on schedule E be eligible for the 20% qualified business income deduction under I.R.C. 199A?

Cash rent farmland per a 3-yr lease that I 100% own.  Property tax and field tile upgrades/repairs are my responsibility per the lease. Have generated, negotiated, and signed cash rent lease with the same farmers since 2005. Also have a separate Wind Farm lease negotiated with MidAmerican Energy where they pay rent for maintenance access roads and two wind turbines installed on this farmland property.  Whether my leasing arrangements and received rental income(s) will qualify for the new 20% QBI deduction per the  I.R.C. 199A regulations that went into effect on Jan 1, 2018 is totally unclear in the TurboTax instructions?  

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Intuit Alumni
Jun 6, 2019 1:30:20 AM

A rental has the rise to the standard of being a trade or business in order to qualify for the deduction. Unless you are doing consistent, frequent work, your farm rentals likely won't qualify. For more information, please check out https://ttlc.intuit.com/questions/4499030-what-is-the-qualified-business-income-qbi-deduction.