Hi Marianne,

Here is a link to Notice 2019-07, Section 199A Trade or Business Safe Harbor: Rental Real Estate (with some relevant excerpts below): https://www.irs.gov/pub/irs-drop/n-19-07.pdf

- It is true that Form 1099-MISC is required only when payments are made in the course of your trade or business.  But you may qualify for the QBI deduction under the new safe harbor even if you're not in a section 162 trade or business.

- The safe harbor is available to taxpayers who seek to claim the deduction under section 199A with respect to a rental real estate enterprise.

- Solely for purposes of this safe harbor, a rental real estate enterprise is defined as an interest in real property held for the production of rents and may consist of an interest in multiple properties.  Taxpayers must either treat each property held for the production of rents as a separate enterprise or treat all similar properties held for the production of rents.

- For taxable years beginning prior to January 1, 2023, 250 or more hours of rental services are performed (as described in this revenue procedure) per year with respect to the rental enterprise.

- Rental services may be performed by owners or by employees, agents, and/or independent contractors of the owners.

Thank you,

Mike D'Avolio

Intuit