We own one single-family rental home. We have no mortgage and it routinely generates positive cash flow. We have a long-term tenant who takes care of routine maintenance like changing HVAC filters, mowing, minor painting, minor repairs, etc. I personally handle all other maintenance and repairs, most of which I do myself. That includes minor plumbing repairs, fixing fences, repairing doors/locks, outside painting when needed, dead tree removal, baiting rat traps, etc. I also arrange for all maintenance jobs I can't do myself, typically HVAC and some plumbing.
But for the most part, this property is on auto-pilot. I would estimate that I spend about 2-3 hours per month (on average) dealing with various issues. And it's not unusual to go 3-4 months with no issue at all. But then I might have a month with several issues requiring many days to resolve.
From my research about this new provision of the tax code, we seem to be on somewhat precarious grounds as to whether this is a qualified trade/business or just an investment in real estate that generates some income.
Just curious about others here who are somewhat "casual" landlords. Are you planning to claim the 20% QBI deduction for 2018? Given my specific situation, would you claim the deduction?
But for the most part, this property is on auto-pilot. I would estimate that I spend about 2-3 hours per month (on average) dealing with various issues. And it's not unusual to go 3-4 months with no issue at all. But then I might have a month with several issues requiring many days to resolve.
From my research about this new provision of the tax code, we seem to be on somewhat precarious grounds as to whether this is a qualified trade/business or just an investment in real estate that generates some income.
Just curious about others here who are somewhat "casual" landlords. Are you planning to claim the 20% QBI deduction for 2018? Given my specific situation, would you claim the deduction?