Qualified Business Income and Rental Property

[Anonymous]

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]250 hours requirement is for one property or both properties combined?[/quote]

I think it’s probably combined for all properties. You need to prove you’re in the business of “real estate.” The time can include actual work done on the propert, visits, paying bills & taxes, time spent looking for tenants, filing paperwork, etc. It’s more inclusive than just manual labor.

My question: if you hire a professional to do the work, can you also include the hours that person spent on labor?[/quote]

According to the safe haven, you can count the hours you hire someone to do the work. The odd thing is you cannot count the time driving to/from the rentals. And yes, I believe all the rentals you own count toward the 250 hours, not per rental.[/quote]

This is interesting. I am the poster with the multiple renovations this year. We hired contractors to do the work but I was just counting the time we spent overseeing their work, going back and forth to the properties etc. How would one estimate the amount of time it took the contractor to do the work? I wasn't planning on including that in my calculation. Also I didn't realize one couldn't include commuting time. Can someone point out where they read that before I remove it from my chart. [/quote]

Here's the doc: https://www.irs.gov/pub/irs-drop/n-19-07.pdf

[Anonymous]

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]250 hours requirement is for one property or both properties combined?[/quote]

I think it’s probably combined for all properties. You need to prove you’re in the business of “real estate.” The time can include actual work done on the propert, visits, paying bills & taxes, time spent looking for tenants, filing paperwork, etc. It’s more inclusive than just manual labor.

My question: if you hire a professional to do the work, can you also include the hours that person spent on labor?[/quote]

According to the safe haven, you can count the hours you hire someone to do the work. The odd thing is you cannot count the time driving to/from the rentals. And yes, I believe all the rentals you own count toward the 250 hours, not per rental.[/quote]

This is interesting. I am the poster with the multiple renovations this year. We hired contractors to do the work but I was just counting the time we spent overseeing their work, going back and forth to the properties etc. How would one estimate the amount of time it took the contractor to do the work? I wasn't planning on including that in my calculation. Also I didn't realize one couldn't include commuting time. Can someone point out where they read that before I remove it from my chart. [/quote]

Here's the doc: https://www.irs.gov/pub/irs-drop/n-19-07.pdf[/quote]

Thanks!