If you meet these
tests, you may qualify to take the deduction under the "Conventional
Rental IRS Notice 2019-07 Safe Harbor Test", below. To claim the new
"QBI" deduction, you need to select the button in the rental
interview that says you qualify to take it.
Conventional Rental
IRS Notice 2019-07 Safe Harbor Test:
1) On a
regular basis, does the taxpayer consult with advisors, negotiate and execute
leases, consult with or act as property managers or personally maintain, manage
or supervise the rental activity of the above property, and does this activity
continue throughout the year?
2) Does
the taxpayer, employees, agents or independent contractor of the taxpayer spend at least 250
hours annually (per property) dealing with the advisors,
managers or personally with tenants, repair or maintenance companies or on-site
issues?
3) Does
the taxpayer maintain contemporaneous (i.e. "at the time of
occurrence") written calendar time records to prove the above regular,
continuous activity?
4) The
taxpayer must include a signed statement with the return that they meet the
requirements of this procedure.
Most
residential and vacation rentals will not qualify for the new "Qualifying
Business Deduction." (Generally speaking, after depreciation, most
residential rentals operate at a loss anyway, so this will not be an
issue.)
