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schedule E rental properties 80%
Old 03-15-2019, 04:44 PM   #1
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schedule E rental properties 80%

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.
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Old 03-15-2019, 05:55 PM   #2
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Yep - As long as your rental activities constitute a trade/business you are good to go.
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Old 03-15-2019, 09:37 PM   #3
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What if you have multiple houses. A loss for some and gain for others?
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Old 03-16-2019, 05:35 AM   #4
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It's very simple, this QBI thing.
https://www.kitces.com/blog/irs-noti...tate-business/

Since we have no rental properties, it does not impact us.
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Old 03-16-2019, 08:47 AM   #5
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Quote:
Originally Posted by michelek View Post
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.
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Old 03-16-2019, 03:27 PM   #6
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Quote:
Originally Posted by gauss View Post
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.
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Old 03-17-2019, 06:39 AM   #7
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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?
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