GeorgeM777
Expert Alumni

Investors & landlords

If you want to use the QBI deduction for your rental income (Section 199A), you will need to take the position that your rental property is operated as a trade or business.  Generally, rental income is considered passive income.  Passive rental activities where a landlord or owner has minimal contact with a tenant – such as collecting rent or making repairs – are excluded from the QBI deduction.  

 

However, in your situation, it appears you have taken the position that because you are eligible to receive the QBI deduction, your rental property is a trade or business.   If you do not intend to operate the rental property as a trade or business (that is, to treat the rental income/loss as passive income/loss), then you need to change your answer to "no" with regard to the QBI deduction question.  

 

Additionally, if you prefer to not make any changes, try just entering the name of the owner and leave the EIN box blank.  

 

@Duckduckgoose

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