Your rental property income is generally considered passive income. In order to be eligible for the QBI deduction it needs to be an active business. If you are a real-estate professional then you already qualify.
If not then only you can decide if it is an active business and qualifies for the deduction. In order to qualify it must meet all of the following requirements-
- Must keep it's own books to track income and expenses just like any business.
- Must have at least 250 hours a year of rental services.
- Must have ongoing records of all the rental services performed.
Here is an excellent TurboTax article on this very question. Take a look at it for more details.
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