How, in a partnership, do you recognize one partner as having qualified business income and the other not? The situation is rental property.

Forum|Forum|6 years ago
December 7, 2019
11 replies
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Best answer by itonewbie

No, the determination of whether the rental property qualifies as a trade or business based on §162 or Notice 2019-07 safe harbor for the purpose of §199A is made a the RPE level. Once that determination is made, you would allocate QBI for the rental to each partner like other QBI items. It is not relevant whether it is a limited or general partner.

Perhaps I am not understanding your question correctly?

itonewbieAnswer

Level 15

No, the determination of whether the rental property qualifies as a trade or business based on §162 or Notice 2019-07 safe harbor for the purpose of §199A is made a the RPE level. Once that determination is made, you would allocate QBI for the rental to each partner like other QBI items. It is not relevant whether it is a limited or general partner.

Perhaps I am not understanding your question correctly?

---------------------------------------------------------------------------------Still an AllStar

B

beylalAuthor

Level 3

The property is farmland. One partners rents from the partnership so it would be qualified income to him. The other partner is not involved at all except to receive the rent. Somehow I need to mark the one with no involvement as having no qualified business income. The mechanics in ProSeries have not let me do that.

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