We have a home that is rented out, the question Im stuck on is "is this qualified business income" How would I answer this correctly?

[Ashby · Accepted solution]

Most likely, the answer is "no".

Unless the rental property you mention has numerous individual units, it is unlikely that you qualify for QBI. It has to qualify as a trade or business. While I don't doubt that you spend time on your rental, you need to be sure you could justify that the rental is on the level of a second, self-employed job. This is assuming that you have a regular wage earning full-time job. There is no definitive IRS language on residential rental income, but if you have a single rental property, I would be hesitant to take the QBI deduction.

[modwife51]

Thank you so much!