I have real estate rental activity which is not being considered for the pass through income deduction.

Forum|Forum|6 years ago
December 7, 2019
2 replies
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Lacerte Tax

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Best answer by abctax55

E?

K-1?

Income in the phase out range?

The program isn't fully functionally yet.

There's also a box to check to "force" rental income to be QBI; Lacerte's official position is the rental income doesn't qualify.

Search for the many threads on the issue...

abctax55Answer

Level 15

E?

K-1?

Income in the phase out range?

The program isn't fully functionally yet.

There's also a box to check to "force" rental income to be QBI; Lacerte's official position is the rental income doesn't qualify.

Search for the many threads on the issue...

HumanKind... Be Both

George4Tacks

Level 15

Here is the magic bullet. It is in the General Information section up towards the top of Screen 18 for Individual

IRC Section 162 Trade or Business: 1=yes, 2=no [O]

General Information Screen 18; Code 969

Make an entry to override the automatic determination if this activity is a trade or business under the definition of IRC Section 162. This will determine the automatic adjustment of the income/loss on Form 461

By default, a Schedule E is considered to not be a trade or business. An activity will be considered to be a trade or business if there is an entry indicating that the taxpayer is a real estate professional.

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