How do I answer the question "Is this Qualified Business Income"? I went through a property management company and rented out my house for the past year.

carlykelsie- — Mon, 03 Jun 2019 17:16:23 GMT

If you meet these tests, you may qualify to take the Qual...

KittyM — Mon, 03 Jun 2019 17:16:24 GMT

If you meet these tests, you may qualify to take the Qualified Business Income (QBI) deduction under the "Conventional Rental IRS Notice 2019-07 Safe Harbor Test", below. To claim the new QBI deduction, you need to select the button in the rental interview that says you qualify to take it.

Conventional Rental IRS Notice 2019-07 Safe Harbor Test:

1) On a regular basis, does the taxpayer consult with advisors, negotiate and execute leases, consult with or act as property managers or personally maintain, manage or supervise the rental activity of the above property, and does this activity continue throughout the year?

2) Does the taxpayer, employees, agents or independent contractor of the taxpayer spend at least 250 hours annually (per property) dealing with the advisors, managers or personally with tenants, repair or maintenance companies or on-site issues?

3) Does the taxpayer maintain contemporaneous (i.e. "at the time of occurrence") written calendar time records to prove the above regular, continuous activity?

4) The taxpayer must include a signed statement with the return that they meet the requirements of this procedure.

Most residential rentals will not qualify for the new "Qualifying Business Deduction." (Generally speaking, after depreciation, most residential rentals operate at a loss anyway, so this will not be an issue.)

topic How do I answer the question "Is this Qualified Business Income"? I went through a property management company and rented out my house for the past year. in Investors & landlords

How do I answer the question "Is this Qualified Business Income"? I went through a property management company and rented out my house for the past year.

If you meet these tests, you may qualify to take the Qual...