Get your taxes done using TurboTax

Thank you Dianne.

Couple clarifications (I think this is it!) and a new QBI question since it popped up.

And this time I will not include the personal info in the screenshots – (Thank you TTax for catching/removing)

For the SHEFST your verbiage was small “business” (vs small “taxpayer”). Was that intentional? Screenshot how I entered after your most recent input.

Also, the SHFEST prepopulated with my Rental property name (see screenshot – I CHANGED THE PROPERTY NAME)

Do I need to add anything in the way of the actual two expenses that are taking advantage of that election…or is this form just intentioned to identify the property (Business) qualifying for the election?

Finally, QBI.

Previous 2 years I more than exceeded the 250-hour requirement, as had a relatively difficult tenant and it was in the first two years since acquiring/converting the property to rental (Lots of initial activity). Now (2024)  I have a relatively “maintenance free” tenant and fewer Property manager type issues – but am still hands on.

I’m closer to 150-200 hours. However, walking through the TTax screens, it appears to be prompting me that I can still qualify. I’ve read concerns on forum about claiming this if I have less than the 250 hours; however from the TTAx questions (see screenshots) I easily meet the criteria in those respective questions.

I drilled into TTAx “?more info” and found:

Examples

• You rent a piece of bare land you own to a long-term tenant. You don't provide or maintain any improvements to the land. The tenant is responsible for any improvements. There is very little that needs to be done to collect income from this property besides depositing monthly checks. This type of activity is typically not classified as a trade or business. (Note that farm rentals reported on Form 4835 would commonly follow this fact pattern.)

• So this is close to my scenario in one aspect (stable tenant) – however I am involved with some of the major maintenance, repairs (Roof leak), improvements (example of the windows, water heater, furnace – even if two of those were installed by contractor).
•  I was still very involved – but by my log, unless I missed something, I’m only at 200 hours max.

So - would you lean toward claiming the QBI or not? I will still be making a profit for this year.