Yes, it counts for both of you and yes, waiting around for the plumber counts.
What if you own a rental — or three — but don’t qualify as a real estate professional? Turns out 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 enterprise (a rental property or group of similar rental properties, including K-1 rental income) must satisfy these requirements:
- Each enterprise maintains its own books and records to track income and expenses;
- At least 250 hours of rental services are performed per year per enterprise; and
- (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
QBI
