Carl
Level 15

Investors & landlords

I myself own three rental properties. But even so, rental income doesn't even come close to providing more than half my income and even if it did, there's no way on this green earth that I can convince anyone that I spend more than 250 hours a year directly involved in the rental property - even if I combine all three. That would require an average of 4 hours and 50 minutes a week.

So the reality is, a vast majority of us rental property owner's just flat out will not qualify for the QBI. If I were to claim it, then I would fully expect to be called on it by the IRS (i.e.; audited) 24-36 months down the road after claiming it. Therefore I'm not even going to consider trying to claim QBI on my rentals. For me it would be the equivalent of hanging a sign out that reads, "HEY! IRS! AUDIT ME NOW! I WANT TO PAY LOTS OF FINES, PENALTIES, BACK TAXES AND INTEREST! PLEASE! HURRY! QUICK! FAST!"