Hi, I'm a real estate professional (has a license, filing as sole proprietor), helping people purchasing/selling houses. I also own several rental properties. The rental properties are treated as one enterprise and satisfy QBI safe harbor.
For QBI purpose, can I combine them to one aggregated business? I see aggregating them is better for tax purposes.
However, I'm uncertain how to interpret the following rule:
Since to qualify a real estate professional, I may combine the real estate business with the rental business, I would assume that I can combine them. But I'm not sure whether the house purchase/sell and rental businesses are offered together or operated in coordination with each other. I often use my rental experience to advice real estate customers to purchase/sell houses, and I purchase/sell my rental houses myself. Does that count?
If so, how should I answer the following questions?
If you indicate in TurboTax that your business is aggregated with your other businesses, we'll ask you to enter:
Can someone enlighten me on the IRS rules that allow the real estate and rental businesses to be combined? Also, I didn't combine them last year since I didn't try to combine them in turbotax last year.
Thanks a lot!
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see this link for a discussion of aggregation because there are specific rules for aggregation. you are not an SSTB
if it is not clear then you should consult a tax pro who could better advise you.
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