Any news yet on what is going on with the schedule E rental real estate filers and QBI deduction?
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The IRS provided some guidance in Publication 535:
The IRS provided some guidance in Publication 535:
Hi Katie my name is Frank and was wondering if you can be of help to me. I am bit confused on how to treat 199a on schedule E for house rental. Client has a 2 family home of which 1/2 or 50% is rented the entire 2018 tax year. Can the profit on the rental QBI deduction, if so how. Can they qualify Safe Harbor?
Also, the article on the Safe Harbor states the property was not used as a residence for any part of the year. Does this mean the portion of the home that was rented.
And the 250 hour rental services does this mean the property was rented for at least that minimum time.
Please get back and thank you.
The code section cited in Notice 2019-07 in reference to the phrase "used by the taxpayer as a residence" is §280A. The answer to your question lies in whether the property was a vacation home.
The 250-hour requirement is in relation to the number of hours the taxpayer, his/her employee, independent contractors, and agent must have clocked in for rental services as defined in Notice 2019-07. It's not about the number of hours the property was let out.
Sorry forgot to thank you itonewbie and all others.
forgot to thank you for the help.
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