2979048
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Is it easy to qualify for QBI deduction with more than 10 rental properties?

The help indicates that qualifying for QBI for rental properties can be a grey area if you are a mom and pop investor with 1-2 properties. But does having more than 10 rental properties make qualifying for QBI a slam dunk (much easier)? I have 13 rental properties managed by property managers - they coordinate the repairs/maintenance/tenant selection with my input.

 

Thank you for your response

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

Is it easy to qualify for QBI deduction with more than 10 rental properties?

It seems likely that it would qualify as a "Trade or Business", and therefore qualify for QBI.

 

But if your rentals show a tax-loss, that may not be a good thing.

Is it easy to qualify for QBI deduction with more than 10 rental properties?

have you checked the rules for real estate professionals? for them by definition income/loss is not passive and then they automatically qualify as a business.

https://www.fortunebuilders.com/real-estate-professional/ 

even if you don't qualify as a REP there are safe harbor rules which if met would prevent the IRS from challenging the QBI deduction 

https://www.journalofaccountancy.com/news/2019/sep/rental-real-estate-safe-harbor-qbi-deduction-2019... 

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question