It depends on all of the relevant facts and circumstances. You may wish to revisit the TurboTax interview for your farm rental activity to confirm that you answered all of the questions as intended.
Rental real estate is treated as a trade or business for purposes of the Qualified Business Income Deduction under section 199A if it meets any of the following three tests:
- The rental real estate rises to the level of a section 162 trade or business.
- The rental real estate is a rental real estate enterprise meeting the requirements of the safe harbor provided in Revenue Procedure 2019-38 (and the direct owner of the property chooses to rely on the safe harbor).
- The rental or licensing of property is to a commonly controlled trade or business operated by an individual or a passthrough entity as described in Treas. Reg. section 1.199A-1(b)(14). This is often referred to as a self-rental.
A link to a PDF version of the Revenue Procedure, a summary of its provisions, and many more questions and answers are available at this IRS webpage.
The "safe harbor" provision, if it is relied upon, has four requirements, all of which must be met.
Please see this TurboTax help article regarding rentals and the QBID and this one regarding the QBI in general. Here is another Community discussion on this topic.
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