QBI deduction

Forum|Forum|5 years ago
April 10, 2021
11 replies
40 views

If a client wants to take a QBI deduction for profits from a residential rental property does he report the income and expenses on Schedule E or Schedule C?

Does he have to pay self-employment taxes on the profit?

ProSeries Basic

This topic has been closed for replies.

dascpa

Level 11

What clients wants to do is irrelevant - it's what the law says.

It's still Schedule E but client would have to qualify and it's doubtful that a single residential rental property would meet the Safe Harbor Standards of 250 hours. check the rules on rental properties and the requirements to claim QBI.

sjrcpa

Level 15

If the rental is trade or business it qualifies for the QBI deduction.

Meeting the safe harbor is not required, unless you want to rely on the safe harbor.

Facts and circumstances determine whether it is a trade or business.

The more I know the more I don’t know.

W

wethepeopleAuthor

Level 5

If the rental activity does qualify for the QBI deduction does it get reported on Schedule E or C and is the profit subject to the self-employment tax?

Sign up

Login with SSO

Let's get you signed in

Login with SSO