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We have a home that is rented out, the question Im stuck on is "is this qualified business income" How would I answer this correctly?
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We have a home that is rented out, the question Im stuck on is "is this qualified business income" How would I answer this correctly?
Most likely, the answer is "no".
Unless the rental property you mention has numerous individual units, it is unlikely that you qualify for QBI. It has to qualify as a trade or business. While I don't doubt that you spend time on your rental, you need to be sure you could justify that the rental is on the level of a second, self-employed job. This is assuming that you have a regular wage earning full-time job. There is no definitive IRS language on residential rental income, but if you have a single rental property, I would be hesitant to take the QBI deduction.
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We have a home that is rented out, the question Im stuck on is "is this qualified business income" How would I answer this correctly?
Most likely, the answer is "no".
Unless the rental property you mention has numerous individual units, it is unlikely that you qualify for QBI. It has to qualify as a trade or business. While I don't doubt that you spend time on your rental, you need to be sure you could justify that the rental is on the level of a second, self-employed job. This is assuming that you have a regular wage earning full-time job. There is no definitive IRS language on residential rental income, but if you have a single rental property, I would be hesitant to take the QBI deduction.
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