Carl
Level 15

Investors & landlords

I would suggest (and it's only a suggestion) that you not bother with QBI on rental income. I myself have 3 rental properties and I don't come anywhere even close to the 250 hours of being "directly involved" in the rental, even with all three rentals combined. In fact, I had one rental go empty in 2019 and spent a week turning it around to prepare for the next renter. Even then with all three rentals combined, I can't prove I spent more than 60 hours "directly involved" for the entire year.

So if you're only renting a room in  your house to someone and you claim you spend 250 hours "directly involved" in that rental per year, you better be able to prove it, and to prove it was involvement in the rental portion only.

Besides, It's a given that you're not making a taxable profit anyway.  So my suggestion is not to even try.