Hello, I am in the process of doing my 2019 individual tax return. I have read several publications and TT posting. I am confused about QBI and Safe Harbor. I think I qualify but it's not clear and if I should or should not take the deduction. What are the pros and cons?
Here is my situation I am a licensed real estate broker. I own 2 single-member LLCs both own multiple rental properties. Both LLC are for profit based businesses with EIN. I actively participate in both. I spend more than 250 hours and more than half of my work time managing these rentals. All of of these properties are residential real estate. Each LLC has separate bank accounts and separate accounting. Will I qualify for QBI deduction as a trade or business? Also do I want to use a safe harbor to qualify for property deduction? Should I elect to use Safe harbor for this property on its own? Or Elect to combine this property with other properties as part of a real estate enterprise? Or none of these apply?
I not sure about the questions about Specified Service Trade or Business (SSTB). Being a Realtor am I consider a SSTB?
Maybe I am reading to much into this. What I do is simply, I rent rental homes, I collect rent and make repairs as needed. Will I qualify for QBI deduction as a trade or business and should I take it?
Thank you
