K1 Rental Property Income 199A QBI and Business Name

[Duckduckgoose]

We have a basic family trust that bought a single family rental home in 2021. On the K1 Box 7 we have 4. of Net rental real estate income. Box 9 has 5,544 in Directly apportioned deductions. Box 14 Code I has -5,538 in total qualified non-service income.  Box 14 Code I - Unadjusted basis of 282,707.

There are two areas I'm having trouble with. After entering all the info I get the "Participate in this activity? question. This seems address if this is "QBI" or not.  Regardless of what I respond here I come to a scree that has "We see you have Section 199A income"  I check "yes", (the other option being 199A dividends or REIT dividends).  This takes me to Name and employer ID number for the business.  I can't get passed this without entering something, but I have no business entity set up or plans to do so.  Any thoughts on how to get passed this? Thank you!

[GeorgeM777]

If you want to use the QBI deduction for your rental income (Section 199A), you will need to take the position that your rental property is operated as a trade or business.  Generally, rental income is considered passive income.  Passive rental activities where a landlord or owner has minimal contact with a tenant – such as collecting rent or making repairs – are excluded from the QBI deduction.  

However, in your situation, it appears you have taken the position that because you are eligible to receive the QBI deduction, your rental property is a trade or business.   If you do not intend to operate the rental property as a trade or business (that is, to treat the rental income/loss as passive income/loss), then you need to change your answer to "no" with regard to the QBI deduction question.  

Additionally, if you prefer to not make any changes, try just entering the name of the owner and leave the EIN box blank.  

@Duckduckgoose

[Duckduckgoose]

This is very helpful. Thank you. I would only add that I've tried the QBI option both ways (yes and no) and the business name thing comes up anyway. I suppose I'll just put the name of the trust in there and call it good. Appreciate the help.