Can an owner that manages his rental property meet the 250 hourly requirement for a QBI deduction by simply being responsible for managing his rental?

Forum|Forum|7 years ago
June 6, 2019
2 replies
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IRS Notice 2019-07 indicated that one of the activities that can be used towards the 250 hour requirement for a QBI deduction for rental property is "Management of Real Estate." Hence the question above.

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Best answer by Coleen3

I stand corrected. Under the new Qualified Trade or Business, rentals can reach sec 162 trade and business by having continuous activity with profit in mind.

Regardless, IRS is not going to give a definitive answer on whether a "rental real estate operation enterprise" rises to the level of a "trade or business". What IRS does give us with Notice 2019-07 is a "safe harbor".

https://www.irs.gov/pub/irs-drop/n-19-07.pdf

[Edited 2/4/2019 [11am]

Critter

Employee

<a rel="nofollow" target="_blank" href="https://www.forbes.com/sites/peterjreilly/2019/01/30/notice-2019-07-250-hour-requirement-what-it-means-and-how-to-meet-it/#6da9c273f59b">https://www.forbes.com/sites/peterjreilly/2019/01/30/notice-2019-07-250-hour-requirement-what-it-means-and-how-to-meet-it/#6da9c273f59b</a>

C

Coleen3Answer

Employee

I stand corrected. Under the new Qualified Trade or Business, rentals can reach sec 162 trade and business by having continuous activity with profit in mind.

Regardless, IRS is not going to give a definitive answer on whether a "rental real estate operation enterprise" rises to the level of a "trade or business". What IRS does give us with Notice 2019-07 is a "safe harbor".

https://www.irs.gov/pub/irs-drop/n-19-07.pdf

[Edited 2/4/2019 [11am]