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Level 1
posted Feb 4, 2024 11:49:28 AM

I have rental income and want to use the QBI deduction but one of the incomes is a cell tower triple net. Does the preclude my QBI deduction? Is there a way to keep the cell tower income separate?

I have rental income and want to use the QBI deduction but one of the incomes is a cell tower triple net. Does that preclude my QBI deduction? Is there a way to keep the cell tower separate? Actually the cell folks do not pay taxes but probably moot as there is no charge on the tax bill for it.

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1 Replies
Expert Alumni
Feb 6, 2024 8:12:57 AM

To exclude this income from the QBI calculation, set up a new Rental Property for only the cell tower income. Be sure to check the box for "Land" under the type of rental property. Since land is not depreciated, you don't need to figure a basis for the portion under the tower.

 

Then check the "NO" box for the question "Is this Qualified Business Income?" This question appears at the end of the property interview.