topic QBI for rental property in Investors & landlords

QBI for rental property

bptsj — Sat, 11 Apr 2020 21:35:08 GMT

My wife and I own and manage several rental properties. We treat this as "Income from Rents & Royalties" but do not have a business entity or business name. Can we still select the Qualified Business Income deduction? The rentals are all within the US and the income is not wages. -- Thanks

Re: QBI for rental property

KarenM90 — Sat, 11 Apr 2020 21:53:15 GMT

Rental properties are usually treated as passive activities, and passive activities are excluded from the definition of a qualified trade or business.

However, rentals that qualify as trades or businesses under IRC § 162 are not considered passive, which means they could potentially qualify for the QBI deduction.

Please see this link for more details: QBI and Rentals

Re: QBI for rental property

parkervasil — Tue, 07 Jul 2020 20:51:21 GMT

Thanks for the link to the article "Can I get the QBI deduction on rental income?".

It is unfortunate that the help in Quicken, including the on-demand tax guidance (What is a qualified business) doesn't include this information nor a link to the article nor a link to IRS Notice 2019-07.

In fact, the help in quicken is really misleading when it says: "In general, if rental or royalty activity is based in the U.S. and carried on with regularity, continuity, and a profit motive, then income from this activity is considered Qualified Business Income (QBI)."

James