Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 9, 2025 6:03:41 PM

I input more expanse on my rental (@Texas) property, but the Federal TAX is increasing. How?

0 1 734
1 Replies
Expert Alumni
Mar 10, 2025 5:12:13 AM

If your rental property is qualified for the QBI (Qualified Business Income) deduction, then as you enter expenses to reduce your rental income, the QBI deduction is also being reduced.  This means that any balance due would be increasing due to the reduction of the QBI deduction since your taxable income is increasing as the QBI deduction gets smaller.