DOES RENTAL PROPERTY QUALIFY FOR QBI DEDUCTION WITHOUT THE SAFE HARBOR REQUIREMENTS?

[taxtime]

CLIENTS HAVE BASIC RENTAL INCOME, $25,000, AFTER EXPENSES. NOT RENTING OUT TO RELATIVES. WOULD LIKE TO FIGURE OUT IF THIS ACTIVITY IS A QUALIFIED TRADE OR BUSINESS?

[Just-Lisa-Now-]

https://www.journalofaccountancy.com/issues/2019/aug/qbi-deduction-for-rental-real-estate.html

[sjrcpa]

Maybe. Facts and circumstances determine whether it is a trade or business.
Read up on the subject. Only you and your clients can make the determination.

[taxtime]

Thank you sjrcpa for your response. I have read up a lot on the subject, but the information is still obscure, hence my question. If you have any specific articles or websites to direct me to, I would really appreciate it.

[taxtime]

Thank you so much Just-Lisa-Now! This is one of the many articles I have read dealing with QBI and the Safe Harbor requirements. Any other articles you would kindly recommend?

[TaxGuyBill]

Personally, I use the Safe Harbor as a guideline.

If they are nowhere near meeting the Safe Harbor rules, in my opinion they are nowhere near qualifying as a §162 business.  If they are close, the maybe they are.