Hello,
I looked through earlier QBI discussions about rental income at this portal. They are more confusing than clearing it! They talk in terms of explaing the IRS rules once more than clarying a particular situation clearly. So I had to ask this in light of my very very specific situation. Please clarify if I can take QBI deduction on my rental income.
- I have two rental homes.
- Both homes are within the same city limits though at different locations.
- Both don't have any mortgage liabilities.
- They are both managed by the same rental agency that I hired and pay some fees.
- Only expenses on the rentals thus rental management fees, insurance, property taxes, repairs, HOA fees.
- Currently net rental income is profit after netting rent with all expenses and depreciation.
- I file jointly with my wife and our combined AGI crosses half a million in 2024.
- Both of us are not in real estate business.
- And we are not in any Specified Service or Business (SSTB) nor the tenents. The tenents are just normal families that rent and stay leased for a year.
With this background, please help with the following 2 questions.
1) Can we take QBI deduction on our rental income. It may be reduced due to our AGI but can we deduct QBI or not is the main question.
2) Can our rental business be treated as part of a combined business by combining both rental homes and their income into one business. It is the only business we own.
I highly appreciate a crisper clarification for my situation which I was not able to arrive at studying the postings so far. Please help.
regards
