I wrote to the author (Roger McEowen), of some key articles that were referenced and suggested by some of those replying to my QBI-related questions, and he replied. He has also graciously given me permission to quote his reply on this forum. Here is what I emailed to him (in Italics):
Although I found your writings very informative, I would like your opinion regarding my very common situation below, please:
- I inherited about 150 acres of cropland in the Midwest a few years ago.
- Accordingly, I rent this land to a farmer and receive a 1/3rd share of the proceeds from the crops.
- I pay for my portion of the fertilizer, and all property taxes.
- Although I visit with the farmer annually for a few hours, speak with him over the phone occasionally, and sometimes advise him regarding what kind of crops to plant, etc., I do not "Materially Participate" or attempt to run the farm operations.
- The farmer and I have an annual lease that details our responsibilities (e.g., I am not an employee of the farm or farmer, nor do I have employees).
- Neither the farm, nor the arrangement, is an LLC or any other type of corporation.
- I report this income (and expenses) on IRS Form 4835.
Based on this common arrangement, as described, would my share of farm income qualify for the QBID?
Mr. McEowen replied with: "I think that is likely QBI based on your facts as stated."
Although, I have probably exhausted this topic for all it is worth in this forum, I still welcome any additional replies - especially any that can provide details and a 'basis' for thoughts, findings, conclusions, etc.
