I have qualified business income from my freelance business, net income $25,000.
I also owned a rental property last year, abroad in Finland, which we converted from our personal residence to a rental when we moved to the USA in Jan 2018. It was not a qualified business because we didn't spend much time managing it.
I sold that apartment in June 2019 at a loss of $26,000.
My question is, should the loss on the sale of the non-QBI rental property affect my QBI deduction?
The reason I am asking is because I was using H&R Block, which is reducing my QBI income to 0 because of the rental loss, even though I have told it the rental is not QBI. This confused me so I opened a TurboTax account to see how TT handles the situation. In TT the rental sale loss does not affect my QBI deduction, resulting in a greater refund.
I am just wondering which is the correct way of handling this situation? I don't want to go with TT just for a bigger refund if it's not the proper way of handling it.
