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thuyp2003
New Member

I have 3 resident rentals and I also work as Software Consultant. Can I claim the rental and my consultant job with QBI?

 
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2 Replies
DanielV01
Expert Alumni

I have 3 resident rentals and I also work as Software Consultant. Can I claim the rental and my consultant job with QBI?

It depends, but this income can qualify.  The QBI calculation is complicated, but these types of income can qualify for the deduction if all the other qualifications are met (such as your overall income and whether or not you are a Specialized Service Trade or Business with too much income to claim the deduction).

This FAQ provides additional information, and TurboTax will help you to determine if you qualify and how much of your income will be deducted for the Qualified Business Income (Section 199A) Deduction:  https://ttlc.intuit.com/replies/7036528

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Carl
Level 15

I have 3 resident rentals and I also work as Software Consultant. Can I claim the rental and my consultant job with QBI?

 It depends, and each rental property has to qualify separately and on it's own. Basically, if you spend more than 250 hours directly involved in that rental, then it qualifies. But with three rentals that would be 250 hours each for a total of 750 hours to qualify for all three. That means you spend at least 15 hours a week involved in the rentals. Now if you qualify for all three that would qualify you as a real estate professional. Very doubtful since you have a full time job as a software consultant. Note also that record keeping time does not count for this, as there is a difference between "involved" in the rental, and "managing" the rental.

I too have three rentals and don't come anywhere close to qualifying for the QBI on any of them. I'm lucky if I spend 15 hours a year involved in all three of my rentals, combined.

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