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Updated over 3 years ago,

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Brian Sohmers
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3
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Tax question about using QBI - Do I need use aggregated business?

Brian Sohmers
Posted

I own many SFH rentals and when preparing my 2020 taxes, learned about the 20% qualified business income (QBI) deduction. Yay! I think I need to use the aggregated business safe harbor in order to meet all requirements, namely the 250 service hour requirement, since I don't meet the 250 hours for each individual property but do meet it in aggregate. Does anyone else have experience using this safe harbor and am I interpreting it correctly?

Also, on Schedule B form 8995-A the IRS asks to "Provide a description of the aggregated trade or business and an explanation of the factors met that allow the aggregation in accordance with Regulations section 1.199A-4." Any advise on how to best answer this question is appreciated. Thank you in advance!

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