Does a "real estate professional" over 200k qualify for a self directed 401k deduction on form 1065 Schedule K for

It wont let me deduct % because my income is not qualifying. I am a active (over 900 hrs annually) real estate professional would this qualify? I am assuming i have to pay self employment tax as a real estate professional which then allows me to qualify for a self directed 401k. Where should i be entering the income amounts so the system  can calculate the maximum contribution?

 

Type of Business is "Rental real estate" which may be the cause of this but if thats the case what type of business would be chosen and activity code? 

Retirement tax questions


@arcontento wrote:

It wont let me deduct % because my income is not qualifying. I am a active (over 900 hrs annually) real estate professional would this qualify? 


No, it would not qualify, at least not absent other circumstances.

 

Fees from actively managing rental properties is earned income subject to self-employment tax (and therefore "qualifying") while rental income from rental real estate is not; the latter can be either active or passive but the income is not considered earned income subject to self-employment tax.

 

See https://www.law.cornell.edu/cfr/text/26/1.1402(a)-4