I am puzzled as to how TurboTax came to the conclusion that my income from my farm rental qualifies for the "Qualified Business Income Deduction" (QBID).
Here is the situation: I live in California, and inherited some farmland a few years ago in the midwest. Accordingly, I receive a share of the income from the crops, and I pay for a portion of the fertilizer, and all the property taxes. Although I visit the farm annually, and communicate with the farmer a few times per year, and occasionally advise him when he asks what kind of crops I want, etc., I do NOT "Materially Participate" (e.g., I do not run the operations, or spend more than a few hours at the farm each year). Also, the farm is not an LLC or any other type of corporation. I simply receive payments, and report this income (and expenses) on IRS Form 4835.
Recently, I read some articles about QBI, and concluded that it is not easy to find a simple answer to this question. TurboTax somehow concludes that this income qualifies for the QBID when I use it to file my IRS Form 1040. Nevertheless, I would like to ask the TurboTax community:
Based on the information provided above, does this income qualify for a QBID? Why or why not?
