Martha806
Level 1
07-10-2020
01:05 PM
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Is there an definitive method of identifying whether a rental property would qualify for the QBI deduction? Self managed. Commercial properties. Doesn't require 250 hours to manage.
Employee
07-10-2020
02:44 PM
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Unfortunately, there is no definitive method to identifying whether a rental property would qualify for the QBI deduction. The only IRS guidance is that the property must qualify as a Section 162 Business. Specifically it must be regular and continuous and be operated with a profit motive. The IRS has issued safe harbor rules for a rental property, but those require 250 or more hours of rental service performed for the property.
Michael D