I own one home that we will eventually sell, but it has been a rental for the last year and a half, do I qualify for Qualified Business Income status?
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It depends. Rental
properties are typically treated as passive activities, which are excluded from
the definition of a qualified trade or business. However,
rentals that qualify as trades or businesses under IRC § 162 are not considered
passive, and that means their income can qualify for the QBI deduction. See more information on rentals that qualify as trades or businesses in the FAQ linked at the end of this answer.
But first, note that income from these types of rentals is specifically excluded for the purposes of the QBI deduction:
If your rental or rental activities fall into any of the above categories, you can't take the QBI deduction on the income.
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