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Updated about 7 years ago,

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1,040
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Christopher Smith
  • Investor
  • brentwood, CA
729
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1,040
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New Tax Law: 20% of Qualifying Business Income Deduction

Christopher Smith
  • Investor
  • brentwood, CA
Posted

Has anyone found any authoritative sources that indicate the 20% QBI deduction under the new tax act applies specifically to rental real estate properties that are considered as Passive Activities under current law? 

The new provision clearly includes rental real estate (whether or not in an entity), but the language requiring that the income be effectively connected to a US Trade or Business is potentially ambiguous. Passive rental real estate activities do not necessarily qualify as a Trade or Business activity for various provisions of the tax law - so clarification here would be really helpful.

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