schedule E rental properties 80%

[ducky911]

Hi,

Just got a note from my CPA and I will qualify for only being taxed for 80% of my rental property income. Schedule E
Yea!
Seem like I have always gotten screwed when tax law changed. So good to win with this one.

 

[gauss]

Yep - As long as your rental activities constitute a trade/business you are good to go.

 

[michelek]

What if you have multiple houses. A loss for some and gain for others?

 

[target2019]

It's very simple, this QBI thing.
https://www.kitces.com/blog/irs-not...ours-safe-harbor-rental-real-estate-business/

Since we have no rental properties, it does not impact us.

 

[gauss]

What if you have multiple houses. A loss for some and gain for others?

Off hand, I believe that the QBI deduction is based on the net business profits.

edit: Each business, however, is treated separately.

So the next question 'are multiple rental properties separate businesses or not?'
When I looked into this several years ago, I seem to recall that if the rental properties were located in separate geographic markets, then they would or could be considered different businesses.

Note I only have one property which actually lost money in 2018, so I haven't dug into this fully yet.

 

[Offgrid Organic Farmer]

Off hand, I believe that the QBI deduction is based on the net business profits.

edit: Each business, however, is treated separately.

So the next question 'are multiple rental properties separate businesses or not?'
When I looked into this several years ago, I seem to recall that if the rental properties were located in separate geographic markets, then they would or could be considered different businesses.

Note I only have one property which actually lost money in 2018, so I haven't dug into this fully yet.

It has been a few years but back when we owned multiple apartment buildings, in different places [California, Scotland, Connecticut, and Washington] We did each of them on separate schedule Es.

 

[stephenson]

Read up on it ... still ‘fused ...

Have three houses all in same neighborhood - I generally repair, repaint, clean between clients, etc them myself, but they are managed by an agency. Have always had them on Schedule E ... several years now.

It appears the income would be subject to the new rules ...

Thoughts?