Investors & landlords

if you file as a real estate professional (REP) you are entitled to the QBI deduction which is a separate code section (199A) from the passive activities code section (469). Rental real estate is not a passive activity for REPs so is treated as a nonpasive trade or business. on the other hand you don't have to be a REP to qualify for the QBI because that has different requirements. one being only 250 hours. 

 

you can be a REP one year but not the next