So, definitely the issue is that I am losing the QBI deduction. As I enter rental expenses, but rental property goes into a loss and the property has no rental income and hence no QBI deduction. If I show NO (or less expenses) so that my rental property makes a profit and I have positive rental income, I get a QBI deduction.
TurboTax is likely doing this work correctly, but a tax law that charges less tax when you make more income seems wrong or badly constructed. My case is likely common enough and it seems that if I made more money on my rental business, I would owe less taxes.
