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March 1, 2025
Question

This land is rented out foe farming. Local FArmer, not a big business. Is this a QBI?

  • March 1, 2025
  • 1 reply
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    1 reply

    AmyC
    Employee
    March 2, 2025

    Probably not. It isn't a business, it is passive income and you may not be very involved. If this is true, it is not QBI.

     

    In the Learn More - it states:  If you are renting property that requires very infrequent interaction with the tenants and maintenance to the property, the courts have generally found this type of activity is not a "trade or business".

     

    From What is the Qualified Business Income (QBI) deduction?: For the purposes of the deduction, QBI is defined as net business income, excluding:

    • Income generated outside the United States
    • Investment income
    • W-2 compensation paid to an S corporation owner
    • Guaranteed payments to a partner
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