Qualified Business Income Deduction (QBI) for Rental Properties – Top Ten List
1) Eligibility Requirements: Must be considered a trade or business under IRS guidelines.
2) Deduction Amount: Up to 20% of qualified business income.
3) Income Thresholds: Phase-out begins at $182,100 for single filers and $364,200 for married couples filing jointly.
4) Rental Services: Significant rental services like maintenance and tenant management must be provided.
5) Recordkeeping: Detailed activities, expenses, and management time records are required.
6) Multiple Properties: Multiple properties can be aggregated as a single business.
7) Real Estate Professional Status: More flexibility for those qualifying as real estate professionals.
8) Deductible Expenses: Based on net rental income after deductible expenses.
9) Specified Service Trade or Business (SSTB): May limit deduction based on income level.
10) IRS Safe Harbor: Specific rules to qualify rental activities as a trade or business for QBI deduction.
This information is provided for general informational purposes only and should not be considered tax or legal advice. Consult a professional tax advisor or attorney for advice about your situation.
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