-New IRS info today! - 20% QBI Deductions on rental income...

[Brandon G.]

For those that are interested, see the new IRS Notice 2019-07 that was just released. After a quick skim (page 7), it looks like we finally have our guidance on possibly claiming the 20% QBI deduction on rental income. 

Safe Harbor for Sec 199A:

A. Keep separate books 

B. 250 or more hours/year service

C. For 2019 and future years, maintain a detailed log as well

Side note; If you have Commercial and Residential, you need to treat them as separate enterprises for this purpose. Also triple net leases not eligible for Safe Harbor. Keep this in mind and adjust your strategies accordingly.  :)

[Brandon G.]

You are correct. The QBI is based on the net income of the business. So if no net income, no QBI....