QBI DEDUCTION FOR RENTAL PROPERTY (A HELPFUL EXAMPLE ACTIVITY LOG)

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With the QBI deduction, most self-employed taxpayers and small business owners can exclude up to 20% of their qualified business income from federal income tax.

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This has several unfortunate implications. Any losses a landlord suffers in Real Estate cannot be offset against income you earn from job, stocks, etc.

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How To Apply QBI for Rental Property

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Under the safe harbor, a rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction, if certain criteria are met.

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1. Separate books and records are maintained to reflect income and expenses for each rental real estate enterprise.

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2. For rental real estate enterprises that have been in existence less than four years, 250 or more hours of rental services are performed per year.

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QBI DEDUCTION FOR RENTAL PROPERTY (A HELPFUL EXAMPLE ACTIVITY LOG)

With the QBI deduction, most self-employed taxpayers and small business owners can exclude up to 20% of their qualified business income from federal income tax.

This has several unfortunate implications. Any losses a landlord suffers in Real Estate cannot be offset against income you earn from job, stocks, etc.

Rental Real Estate as Passive Income

How To Apply QBI for Rental Property

Under the safe harbor, a rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction, if certain criteria are met.

1. Separate books and records are maintained to reflect income and expenses for each rental real estate enterprise.

2. For rental real estate enterprises that have been in existence less than four years, 250 or more hours of rental services are performed per year.

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