All Forum Posts by: Joshua T.

Just to confirm - you are talking about your net rental taxable income(after depreciation) is positive?
If it is positive - then you may potentially get a QBI deduction.
Only reason i mention if this is the case - you may want to see if you can do something on a future property like a cost-seg that would bring your rental income down.

Regardless - you likely will get the QBI deduction on your real estate agent/realtor business. 

Many of us on the forum  work with clients nationwide, so it would really be a matter of reaching out to a couple, having a conversation, and seeing who you think might be a good fit. Rhode Island is a small state, so not too surprising you didn't find anyone in your immediate area. Many New England based firms / accountants will have experience with RI (if that is important to you) just by proximity - many multi state businesses also do work there. Other then that, any of those who replied to this thread would be more than competent to assist you.

You likely need a new CPA. You get a QBI deduction of an activity is an IRC Section 162 trade or business, as my colleagues have already stated. Some of the buzz words around 162 would be that the activity is for the intent of profit, and that it is regular and continuous. As already mentioned, in Hazard v Commissioner the courts decided that even a single family rental met the threshold to be a trade or business. It is a VERY low barrier to get across. If you are managing your properties, you are very likely all set. It sounds like your CPA is confusing 162 with being a qualified real estate professional under 469 - two very seperate and distinct tests.

The one rental area where the QBI is quickly lost is triple net lease, but even then for a landlord in the business of doing triple net leases, they could qualify for 162.

@Joshua T.

Is your rental property activity generating a net taxable gain or loss without the QBI?