DaveF1006
Expert Alumni

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According to this IRS publication, If an interest in real estate fails to satisfy all the requirements of the safe harbor, it may still be treated as a trade or business for purposes of the section 199A deduction if it otherwise meets the definition of a trade or business in the section 199A regulations. This means that if you carry on the rental business with regularity, continuity and with a profit motive, you may qualify for QBI.

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