thank you for the response. I tried to play with one of the properties and inflated the income so that i end up with a positive income overall across my 5 properties. What happened was interesting. I ended with slightly bigger tax refund due to QBI. I was able to deduct 20% of my rental properties income from my overall taxable income. But how come my taxable income didn’t increase by the rental income amount (let’s say $10k)? Instead, my taxable income was reduced by $2k (20% rental income)? Did my rental income get offset by last year’s carryover loss?
