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Updated about 2 years ago,

User Stats

5
Posts
2
Votes
Murray Stokely
Pro Member
  • Investor
  • Silicon Valley, CA
2
Votes |
5
Posts

QBI benefits for ~25 rental properties, most with paper losses

Murray Stokely
Pro Member
  • Investor
  • Silicon Valley, CA
Posted

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!


  • Murray Stokely
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