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Level 2
December 7, 2019
Solved

If a real estate LLC has both active and non-active members, do I allocate Qualified Business Income to the active members only?

  • December 7, 2019
  • 2 replies
  • 13 views
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Best answer by TaxGuyBill

Nope.  It the LLC qualifies for the QBI, it goes to all members, regardless if they are active or not.

2 replies

Level 15
December 7, 2019

Nope.  It the LLC qualifies for the QBI, it goes to all members, regardless if they are active or not.

abctax55
Level 15
December 7, 2019

The determination is made at the entity level, and the specifics provided to the members/shareholders/etc via the K-1.

This is totally different from the rules for active/passive participation....which is why my head hurts :smile:

HumanKind... Be Both
George4Tacks
Level 15
December 7, 2019
Yes, but only one of the reasons the head hurts. This season my whole being hurts.
Answers are easy. Questions are hard!