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Rental property - my federal tax goes up when i enter all my expenses (e.g. maintenance, HOA dues). If i do not include those expenses, QBI is going up & tax down
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Rental property - my federal tax goes up when i enter all my expenses (e.g. maintenance, HOA dues). If i do not include those expenses, QBI is going up & tax down
The situation you described is certainly possible.
However, you should claim the expenses that you have incurred even though you will be getting less of a QBI (Qualified Business Income) deduction. If your return were to be examined by the IRS for some reason, it is not likely that they would approve of not claiming all of your expenses in favor of generating a larger deduction.
You also need to consider whether your rental property is qualified for the QBI deduction. Most rental activities are considered passive activities and would therefore not be QBI.
Take a look at the TurboTax article below for more information.
https://ttlc.intuit.com/replies/7122193
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