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Level 1
posted Apr 9, 2022 9:36:17 AM

my wife received qbi on farm rrent last year but it is not showing this year. why?

0 8 835
8 Replies
Expert Alumni
Apr 9, 2022 9:46:17 AM

Go over your answers to the questions. It should have been calculated. Did you have a profit?

Level 1
Apr 9, 2022 10:04:25 AM

we had a profit.  she received an annual payment for land rental at a set price per acre.  we were only involved in the farm by paying the property tax, ditch assessment, tile repair and arranging the rent.  so it was not even 50% of the time.  the only summary difference is the 1099-misc income amount has an entry in last years but not this years 1099-MISC column even though it is also used to calculate farm income minus expenses later.   did the qualified for QBI box.  has something changed?

Expert Alumni
Apr 9, 2022 10:20:06 AM

I don't know if anything changed from last year but these are the requirements for a rental QBI.

 

 You can qualify for the QBI deduction, as long as your rental activities constitute a trade or business.

Generally, this means each rental real estate must satisfy these requirements:

  1. Each enterprise maintains its own books and records to track income and expenses;
  2. At least 250 hours of rental services are performed per year per enterprise; and
  3. (Starting with tax year 2019) Contemporaneous records of services performed are kept which includes who performed the service, description of service, the date of the service, and how long it took (who, what, when, and how long).

Rental services can be performed by the owners or by their employees, independent contractors, or agents and would include things like:

  • General operation, maintenance, and repair of the property
  • Purchasing materials
  • Property management activities
  • Supervising employees and contractors
  • Advertising the property for rent
  • Tenant selection and background checks
  • Negotiating and executing leases
  • Collecting and depositing rent

Level 1
Apr 9, 2022 10:31:42 AM

does this apply to farm land rental also?  it has to be run as a regular business with accounting books, etc?

Level 1
Apr 9, 2022 10:50:04 AM

oes this  qbi requirement apply to farm land rental also?  it has to be run as a regular business with accounting books, etc?

Level 1
Apr 9, 2022 2:40:08 PM

original questioners response:

my brother in law no longer received QBI this year on the rental of his farm land  either when turbotax allowed him to claim it in the past years.  my guess is the  tax laws changed to make it more difficult to get QBI since last year.  So turbotax changed  to require more involvement in the business than in past years.

Level 1
Apr 9, 2022 2:47:17 PM

original questioners response:

my brother in law no longer received QBI this year on the rental of his farm land  either when turbotax allowed him to claim it in the past years.  my guess is the  tax laws changed to make it more difficult to get QBI since last year.  So turbotax changed  to require more involvement in the business than in past years.

Level 1
Apr 9, 2022 2:48:22 PM

original questioners response:

my brother in law no longer received QBI this year on the rental of his farm land  either when turbotax allowed him to claim it in the past years.  my guess is the  tax laws changed to make it more difficult to get QBI since last year.  So turbotax changed  to require more involvement in the business than in past years.