Reply to Qualified Business Income and Rental Property

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[quote=Anonymous]Schedule E income and deductions. It won’t count as QBI unless you unless you’re actively managing it or you operate another business on the site and have a lease agreement with your own business. It also appears it needs to held through a corporate vehicle (LLC, S Corp, etc)

https://www.sikich.com/insight/tax-considerations-for-real-estate-investors-how-does-the-qualified-business-income-deduction-apply-to-real-estate-businesses/

I rent out my basement level apartment and live in the house above. I do a lot of active management - market the unit, find the tenants, make repairs and upgrades to the unit and shared amenities. But it’s not my “business.” I believe there is an annual hours spent threshold to qualify as being in the business of real estate.

Now, if you own a bunch of units, hold them in a corporate vehicle, and/or real estate is clearly your main “business,” then you likely will qualify. But just owning one rental condo that you bought 20 years ago before getting married won’t qualify. [/quote]

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