Business & farm
TurboTax will automatically apply the Qualified Business Income Deduction if your rental activities qualify you to take the deduction. Your rental activities should qualify for the deduction based on the amount of your net rental income. Can I get the QBI deduction on rental income?
Enter all of your rental properties in TurboTax. You can answer NO to the real estate professional and material participation questions. When you go through the property profile screens, you will be asked about Active Participation which is either owning 10% of the property or you made major management decisions. Answer yes to active participation.
After you are done entering the property profile, rental income and rental expenses, click on Done with Rental Property. Three screens later, TurboTax will ask - is this QBI (assuming you have net income and not a net rental loss). Answer Yes. Do this for each qualifying property and once you are done, your can view your Schedule E worksheet and Form 1040 to see the QBI deduction applied.
