Taking QBI deduction from Rental Income

Hello,

I have a rental property that I manage i.e. I find tenants, I sign the lease. Its typically an yearly lease, I take care of or employ handyman to attend to maintenance issues or repair needs etc. My tenants call/txt me all the times for any issues, so I do spend time attending to those as well as any repair visits. I don't have documentations to prove each of them or quantify the time spent. .Do I meet the safe harbor rule of 199-A? Per the IRS pub, even if one doesn't fit into 199-A safe harbor rule, he or she can still declare the rental as business as long as burden of proof is met.

Can I claim the QBI deduction? This is the first time turbo Tax questionnaire promoted me to claim QBI deduction.

Pl advise.

posted

It sounds that you do qualify... Under the new law, rentals can reach section 162 trade and business qualifications by having continuous activity with profit in mind. And it sounds that you do meet this rule, therefore, you do qualify for the QBI deduction on your rental property .