Must QBI deduction be applied to all rental properties?

Forum|Forum|7 years ago
June 6, 2019
1 reply
13 views

I have three rental properties. Two are making profit after depreciation, and one has loss. Do I have to apply QBI deduction to all three properties if I want to use this deduction? Or I can just apply it to two profitable properties ?

TurboTax Premier Windows

Best answer by CherylW

You can't take QBI if you have a loss. So it would just apply to the two profitable properties.

You also don't have to do anything to take the loss. Turbo Tax automatically takes 20% of your business income, and subtracts it from your adjusted gross income on line 9, Form 1040.

To view your 1040:

1. Go to Tax Tools on the left-hand side.

2. Go to Tools.

3. Go to View Tax Summary.

4. Click Preview my 1040 from the left-hand side.

CherylWAnswer

Level 11

You can't take QBI if you have a loss. So it would just apply to the two profitable properties.

You also don't have to do anything to take the loss. Turbo Tax automatically takes 20% of your business income, and subtracts it from your adjusted gross income on line 9, Form 1040.

To view your 1040:

1. Go to Tax Tools on the left-hand side.

2. Go to Tools.

3. Go to View Tax Summary.

4. Click Preview my 1040 from the left-hand side.

captmike

Level 2

Thank you and everyone at Turbo for all the help and the extra mile you all go when we're in need of fast and accurate answers and info, year after year after year!!!!!

Carl

Level 11

Actually, if the rental shows no profit (and it's not common for rental property to show a taxable profit anyway), then even if you do qualify for the QBI on that property and select it, you won't get it since you don't have any profit to exclude 20% of the gain from. I just ran a test scenario on this, to confirm it.