My wife and I own and manage several rental properties. We treat this as "Income from Rents & Royalties" but do not have a business entity or business name. Can we still select the Qualified Business Income deduction? The rentals are all within the US and the income is not wages. -- Thanks
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Rental properties are usually treated as passive activities, and passive activities 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, which means they could potentially qualify for the QBI deduction.
Please see this link for more details: QBI and Rentals
Rental properties are usually treated as passive activities, and passive activities 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, which means they could potentially qualify for the QBI deduction.
Please see this link for more details: QBI and Rentals
Thanks for the link to the article "Can I get the QBI deduction on rental income?".
It is unfortunate that the help in Quicken, including the on-demand tax guidance (What is a qualified business) doesn't include this information nor a link to the article nor a link to IRS Notice 2019-07.
In fact, the help in quicken is really misleading when it says: "In general, if rental or royalty activity is based in the U.S. and carried on with regularity, continuity, and a profit motive, then income from this activity is considered Qualified Business Income (QBI)."
James
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