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Level 4
December 7, 2019
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Does self-rental income from a C Corporation qualify for the QBI deduction from the owners Sch E?

  • December 7, 2019
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Best answer by itonewbie

No.  The final regulations clarify, based on feedback to the preamble and the Proposed Regulations, that self-rental aggregation only applies if the related party is either an individual or RPE.

You may, however, consider whether Notice 2019-07 safe harbor may apply or whether the rental activity does rise to the level of §162 trade or business.

1 reply

itonewbie
itonewbieAnswer
Level 15
December 7, 2019

No.  The final regulations clarify, based on feedback to the preamble and the Proposed Regulations, that self-rental aggregation only applies if the related party is either an individual or RPE.

You may, however, consider whether Notice 2019-07 safe harbor may apply or whether the rental activity does rise to the level of §162 trade or business.

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