Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 2 years ago,
QBI benefits for ~25 rental properties, most with paper losses
The last two years the TurboTax online forms for bundling together Schedule E incomes into combined enterprises for QBI deductions were really buggy or outright missing, so I have a few questions to make sure I understand this better before going through that pain again.
Most of my rental properties have paper losses of $100-$10,000 this year, and I have W2 income well over the phase-outs for the $25,000 passive loss allowance.
1. If some of my ~25 Schedule E's show a small profit, but most show a loss, is there any benefit of going through QBI? The aggregate is a loss, so does it matter?
2. How important is the aggregation into enterprises of my different schedule Es for this purpose? I have handful of different LLCs, I could aggregate schedule Es and some shared expenses across a few different aggregate enterprises, but TurboTax online has made this pretty difficult in recent years.
3. Since I mostly have losses now, can I just enter them as separate properties for now but bundle them together into QBI enterprises in a future tax year when there is a positive income for the year and thus the benefit of the 20% deduction can be realized?
Any guidance would be appreciated. Thanks!