Is Rental Income Eligible for the 20% QBI Deduction?
My Answer is Still “It Depends”
The QBI (Qualified Business Income) deduction is the new 20% deduction calculated on non-C Corporation trade or business income. A trade or business is defined in such a way that it can apply to some rentals. Your specific situation will determine if you can take it. There is a way to make sure you get the deduction. See below.
Safe Harbor – If you, your employees, or contractors work at least 250 hours in the rental activity you will be allowed the deduction regardless of any other facts. Time spent on repairs, collecting rent, negotiation leases and providing tenant services count towards the 250 hours. By meeting the 250-hour test you will be able to take the 20% QBI deduction.