AmyC
Expert Alumni

Investors & landlords

You clearly keep records for your taxes. Do you keep records of the hours you spend and do you spend at least 250 hours on the rentals? If yes, then you qualify for QBI. These are well laid out in Can I get the QBI deduction on rental income?

Generally, this means each rental real estate enterprise (a rental property or group of similar rental properties, including K-1 rental income) must satisfy these three requirements:

  1. Each enterprise maintains its own books and records to track income and expenses.
  2. An enterprise that has existed less than four years performs at least 250 hours of rental services per year. For an enterprise in existence for four years or more, this test needs to be met for any three of the five consecutive taxable years ending with the taxable year.
  3. (Starting with tax year 2019) Contemporaneous records of services performed are kept which includes who performed the service, description of service, the date of the service, and how long it took (who, what, when, and how long).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"