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Investors & landlords

Yes. To qualify for QBI for rentals you do not have to meet SH requirements. Meeting Sec. 162 requires will suffice. You are the only one who can determine this qualification. To clarify, 250 hours are NOT part of Sec. 162 requirements.

 

.02 Trade or business. Section 199A(d) defines a qualified trade or business as any trade or business other than a specified service trade or business (SSTB) or a trade or business of performing services as an employee.

 

 Section 1.199A-1(b)(14) defines trade or business for purposes of section 199A as a trade or business under section 162 other than the trade or business of performing services as an employee.

 

In addition, § 1.199A-1(b)(14) provides that rental or licensing of tangible or intangible property (rental activity) that does not rise to the level of a section 162 trade or business is nevertheless treated as a trade or business for purposes of section 199A, if the property is rented or licensed to a trade or business conducted by the individual or a relevant pass-through entity (RPE) which is commonly controlled under § 1.199A-4.

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