I have been confused about this for many years as I saw multiple posts here saying that they were not eligible to use Safe Harbor so they applied QBI deduction.
The bottom line is rental property is passive activity which is not qualified to use QBI deduction, then IRS published a safe Harbor (including 250 hrs rental property service and other two conditions), so as long as you meet these three conditions, you can go ahead to use QBI deduction.
So how could some landlords here can still apply QBI deduction even though they don't pass the Safe Harbor?
I think the questions TT asks are confusing the users because it firstly asks you if you are qualified to use QBI safe harbor, and even you answer 'No', the next question it asks you is 'Is this QBI'? If a landlord cannot pass the Safe Harbor test, how could the rental property income will be QBI qualified?
