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zephyrs
New Member

I have 6 rental properties, does all of them qualify for QBI?

Do I need to spend 250 hours on each rental property?  I spend about 800 hours on all 6 properties combined.  Do I need to aggregate all 6 properties as one business or trade?  I obviously didn't spend 250 hours on each property.  

Can I mark each property as QBI without aggregating them as one business/trade?

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1 Reply
Cindy0H
New Member

I have 6 rental properties, does all of them qualify for QBI?

No, you cannot unless you consider them a group of similar rental properties.

What if you own a rental – or six – but don’t qualify as a real estate professional?Turns out you can qualify for the QBI deduction, as long as your rental activities constitute a trade or business.

Generally, this means each rental real estate enterprise (a rental property or group of similar rental properties, including K-1 rental income) must satisfy these requirements:

  1. Each enterprise has its own books and records to track income and expenses;
  2. At least 250 hours of rental services are performed per year per enterprise; and
  3. (Starting with tax year 2019) Contemporaneous records of services performed are kept which includes who performed the service, description of service, the date of the service, and how long it took (who, what, when, and how long).


More on this topic:

https://ttlc.intuit.com/replies/7122193

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