I own a 4-plex. I live in one unit and rent out the other 3. I keep separate books for the 3 rentals, track expenses tightly, and allocate any shared building expenses to each unit separately. In Turbotax I treat each rental as a separate property.
This past year I had a ton of repairs done, and so I meet the 250 hour threshold for QBI. 2 Questions:
1. Is it possible, or advisable, to do QBI for this year only, even though I didn't get to 250 hours last year, and probably won't next year?
2. Does the fact that I live in one of the units kill my opportunity for QBI? Keep in mind that I allocate any shared expenses (example: new roof) to each unit separately, so I only expense to the rental portion what is due to do it, and what is just for my own live-in residence, I don't expense.
I can make an accounting argument that each of the 3 rentals, and my live-in, is a separate property that just happens to be all in one building. So the question is how QBI would view this.
thank you.
