Rentals and qualified business income 199a?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Posts: 1241
Joined: Tue Jul 15, 2014 3:26 pm

Rentals and qualified business income 199a?

Post by JGoneRiding » Thu Dec 06, 2018 8:02 pm

Great I hate irs grey zones! I had no idea what so ever that rentals fell into this lovely new category though I guess it's a win??

We own 4 ish rentals. 1 was sold this year and had tons of hands on maintenance there is capital gains to deal with but most likely the rental part is a small loss

1 is 3 units and I am there most months doing some form of upkeep we will have a profit

1 is a single family but it was turned over this year and needed a lot of turn over stuff and the tenants are needy so I am there most months.

All of these seem to meet the qualification of active participation. BUT

The last one is a single family mobile. I literally have done nothing but drive by it to make sure ok a couple times this year, obviously that could change at any time, but still not required any sort of care this year . So it seems vague from every thing I read so far, and Congress hasn't expressly included rentals nor expressly denied them.

I manage all properties myself and deal with all tenant issues so it looks like I qualify. Overall the rentals always have a profit but that could change to a loss too at any time, not sure how the losses work if it's qbi bec normally I could deduct those (we make <150k)

So what or others doing? How are you interrupting this law?

I wouldn't have known at all except I use turbo tax, it's defiantly implying that this can be qbi but that the law is not clarified, the internet suggests that as well.

Post Reply