1) T be eligible for QBI:
What if you own a rental — or three — but don’t qualify as a real estate professional? Turns out you can qualify for the QBI deduction, as long as your rental activities constitute a trade or business.
Generally, this means each rental real estate enterprise (a rental property or group of similar rental properties, including K-1 rental income) must satisfy these requirements:
- Each enterprise maintains its own books and records to track income and expenses;
- At least 250 hours of rental services are performed per year per enterprise; and
- (Starting with tax year 2019) Contemporaneous records of services performed are kept which includes who performed the service, description of service, the date of the service, and how long it took (who, what, when, and how long).
Rental services can be performed by the owners or by their employees, independent contractors, or agents and would include things like:
- General operation, maintenance, and repair of the property
- Purchasing materials
- Property management activities
- Supervising employees and contractors
- Advertising the property for rent
- Tenant selection and background checks
- Negotiating and executing leases
- Collecting and depositing rent
2)You would enter the same assets the same way they were already reported.
3)
If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property.
- Your basis for figuring gain is the same as the donor's adjusted basis plus or minus any required adjustment to basis while you held the property.
- Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustment to basis while you held the property
NOTE: If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and have a gain, you have neither gain nor loss on the sale or disposition of the property.
If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis at the time you received the gift.
