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Updated almost 4 years ago,

User Stats

120
Posts
73
Votes
Tony Lin
  • Rental Property Investor
  • Fremont, CA
73
Votes |
120
Posts

20% QBI passthrough deduction

Tony Lin
  • Rental Property Investor
  • Fremont, CA
Posted

With the new IRS clarification out for for 20% deduction on QBI for pass through entities, I noticed there is a 250 hours requirement in order to qualify for the safe harbor clause. Can anyone further clarify for the multifamily syndication case as well as the SFR rental case?

1) In multifamily syndications where the apartment LLC hire a property management company to manage the property and hire outside contractors to make repairs/improvements on the property, is this enough to qualify for the 250 hours of RE involvement? Or do the syndication asset managers themselves need to be working on this full time to qualify?

2) Similarly for individually owned (let's say sole proprietorship) rental homes. Would hiring an outside agency to handle leasing/rent collection qualify for the 250 hours of RE involvement? 

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