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QBI for rental property

Martha806
Level 1

Is there an definitive method of identifying whether a rental property would qualify for the QBI deduction?  Self managed.  Commercial properties.  Doesn't require 250 hours to manage. 

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1 Comment 1
MichaelD
Employee
Employee

Unfortunately, there is no definitive method to identifying whether a rental property would qualify for the QBI deduction. The only IRS guidance is that the property must qualify as a Section 162 Business. Specifically it must be regular and continuous and be operated with a profit motive. The IRS has issued safe harbor rules for a rental property, but those require 250 or more hours of rental service performed for the property.

Michael D