I ran into a TT behavior I can't explain. When my rental reports a loss it's not allowed to be deducted as my MAGI is above 150k. So far nothing out of the ordinary. Then, if I report the property as mixed-use by setting "Days of personal use" to be above 14 and 10% of "Days rented at fair rental value" all of a sudden TT
1. Changes line 22 in SchE to match 21 (i.e. lets me deduct rental real estate loss)
2. Propagates it to line 4 in QBID Smart Worksheet under "Calculated QBI allowed after passive/at-risk limits"
3. Propagates it to line 5 in Schedule 1
4. Propagates it to line 8 in Form 1040
and deducts my mixed-use rental property losses against my active income! I thought w/mixed-use rentals you can't deduct at all (regular rental accrues you passive losses till disposition, but something at least). So, how does QBI change this equation for mixed-use rentals? I've never seen a way to write off passive rental property losses against my active income (not a real estate professional).
Best, MM
