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Thank you so much for posting your work-around. My concern is that if managing your rental properties does not truly qualify for QBI outside of the safe harbor allowance, because it's not technically a trade or business, then if you were to get audited, you might not be able to take the deduction. IRS definition: The term trade or business generally includes any activity carried on for the production of income from selling goods or performing services.  From another source - The courts and the IRS look at the facts and circumstances determine whether an activity is a trade or business. Specifically, they look at a number of factors including:

  • the manner in which the taxpayer carries on the activity;

  • the expertise of the taxpayer or his or her advisors;

  • the time and effort expended by the taxpayer in carrying on the activity;

  • the expectation that assets used in the activity may appreciate in value;

  • the success of the taxpayer in carrying on other similar or dissimilar activities;

  • the taxpayer's history of income or losses with respect to the activity;

  • the amount of occasional profits, if any, that are earned; the financial status of the taxpayer; and

  • elements of personal pleasure or recreation