topic do i qualify QBI for renting a room in my primary residence? in Get your taxes done using TurboTax

do i qualify QBI for renting a room in my primary residence?

tututu1 — Tue, 10 Mar 2026 05:32:44 GMT

i rent out a room in my own primary residence, certainly i will not qualify with safe harbor as the time required for this activity is too much to meet, however turbo tax latter suggest if this is in US, and is continuous for profit, which i interpreted as this room i rent is in US and i rent it out continuously with fair market price, and since my rental income is higher than expenses can be deducted, so it has profit. then i want to know would this mean i am qualify for QBI?

i also see if not qualify safe harbor, it will get very high audit risk by IRS, so do you think it really worth the risk to use QBI to save 20% taxable rental income?

Re: do i qualify QBI for renting a room in my primary residence?

Mike9241 — Mon, 18 Jul 2022 08:19:43 GMT

see this thread which discusses rental as a business - would qualify for QBI and as an investment - does not qualify.

https://www.nolo.com/legal-encyclopedia/is-your-rental-activity-business-investment.html#:~:text=Rental%20ownership%20is%20an%20investment%2C%20not%20a%20business%2C,out%20for%20many%20years%20to%20the%20same%20tenant.

"i also see if not qualify safe harbor, it will get very high audit risk by IRS, so do you think it really worth the risk to use QBI to save 20% taxable rental income?"

I don't think anyone on this forum is going to tell you whether it's worth the risk. that's a personal decision. based on the case in the thread

about rental property as an investment, my opinion is you don't have a business but others could have a different opinion.

Re: do i qualify QBI for renting a room in my primary residence?

Critter-3 — Mon, 18 Jul 2022 11:27:06 GMT

If you are properly depreciating the rental portion of the home I highly doubt you have positive Sch E amount to get the QBI deduction anyway so this may be a mute subject.