itonewbie
Level 15
12-07-2019
12:54 AM
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I'd report both on one Sch E so long as your client treats and does manage these as one single enterprise even though management of one unit is outsourced.
For purposes of QBI safe harbor, activities conducted by the owner, employees, agents, and independent contracts are all counted towards the 250-hour requirement. It wouldn't matter if one unit is managed by a property management company but all the other requirements for safe harbor must still be met.
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Still an AllStar
Still an AllStar