I have a number of rental properties which my husband & I materially participate in (we do everything), spend more than 250 hours on (in aggregate), keep separate records for, etc. So, this is being treated as a trade or business, and we are able to take the QBI deduction. We also have a small ownership in a passive unrelated business and get a K-1 (1065) for that business. That K-1 has losses. Turbo Tax is putting the net profit from the rental "business" onto form 8582 (Passive Activity Loss Limitations), and is using that to offset the passive losses from the K-1 business. Is that correct? Would the rental property trade/business be eligible for the QBI and ALSO able to be used against passive losses? In prior years TT did not bring the rental property over to the passive 8582 form, but it is doing so this year. I don't know what to do. The accumulated losses are large, and so this is a material issue for me. Any suggestions? Please - someone help!
