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Rental property 20% deduction? My wife and I are self-employed. She's a full-time real estate professional (+750 hours), I'm not. Rental property title is in my name.

We live in California, which is a common law state.
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Rental property 20% deduction? My wife and I are self-employed. She's a full-time real estate professional (+750 hours), I'm not. Rental property title is in my name.

Can you provide some more details regarding your question?    Qualified business income, or QBI, is the net income generated by any qualified trade or business under Internal Revenue Code (IRC) § 162.

 

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.  To provide preliminary guidance to this popular question, the IRS released Notice 2019-07, the key points of which we've summarized below.

 

Exclusions

 

Real Estate Professionals

 

Everybody Else

 

 

 

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