jeffmcpa2010
Level 11

If they have a paid "Property Manager" probably not qualified.

If they do everything but it doesn't take much time, and they treat their activity as a "trade or business" (Like records you would keep for a business, rather than more casual like a lot of small landlords get) I generally will count as QBI eligible. You don't have to meet the Safe Harbor to qualify, but I do counsel them to do everything right. IE Bank account for the rental business treated like a business (not mixing personal and business in one account), Preparing 1099-NEC or 1099-Misc when you would in a business.(IE Furnace or Plumbing Repairs) etc.

I have some clients that I know don't keep good enough records that I can dig through and find the 1099 information to prepare them, and don't keep separate accounts, the I do treat as non-qualified as well.

It's one of those judgement calls that we have to make.

That's my opinion, I am sure that there are others who may disagree.

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