I rent out condo unit by yearly leases. I deal 100% directly with my tenants. Unit not intended for personal use. Does rent I receive qualify as Business Income in 2018?

[Coleen3 · Accepted solution]

It does if you meet these tests.

If you meet these tests, you may qualify to take the Qualified Business Income (QBI) 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