Qbi safe harbor rental property length of time

Forum|Forum|2 years ago
February 16, 2024
1 reply
0 views

I have two condo rentals since 2019 but I never tracked the time worked on those condos. I finally tracked it last year and met the 250 hour requirement along with the other requirements (separate bookkeeping etc). However reading this

"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. For other rental real estate enterprises, 250 or more hours of rental services are performed in at least three of the past five years."

Does this mean that I can claim the qbi safe harbor in the tax year 2025 (assuming I met the 250 hours requirement in 2023, 2024, and 2025)?

Not A Product Question

KrisD15

you can claim for tax year 2023 if the requirements were met.

The quote is saying that for the first four years, to claim Safe Harbor, the 250 hours must be met for the year you claim Safe Harbor.

After the first four years, there may be a year the 250 is not met but Safe Harbor is still allowed for that year if the 250 was met three of the last five years.

You DO NOT need to wait four years to start claiming safe harbor.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"