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How do I find out whether I qualify for QBI deduction for my rental property? While filling, I am getting the a question"are there any adjustments to QBI needed"?

 
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2 Replies
Carl
Level 15

How do I find out whether I qualify for QBI deduction for my rental property? While filling, I am getting the a question"are there any adjustments to QBI needed"?

Were you directly involved in the management of the rental for at least 250 hours during the tax year? If so, do you have your time documented so you can prove it, if audited? If no to both, then your rental does not qualify for the QBI. Do note that time spent doing any book keeping does not count for this. I myself have three rentals and don't come anywhere close to qualifying for the QBI deduction. In fact, I'm lucky if I spend more than 15 hours a year dealing with all three rentals combined.

Overall, while it's not going to be rare, I feel safe in saying that it's not all that common to qualify for the QBI deduction if you have three rentals or less. My sister has 6 rentals and doesn't come anywhere close to qualifying on any of them.

How do I find out whether I qualify for QBI deduction for my rental property? While filling, I am getting the a question"are there any adjustments to QBI needed"?

The situation is clear now... you explained it very well. Thank you very much!

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