Hi all -
Someone has asked me about the 20% deduction for qualified business income with respect to income from rental of real estate.
My understanding is that to qualify for the deduction, it has to be for a "trade or business." But rental activity, when income is passive, does not qualify as a "trade or business."
Am I off base here? Am I missing something?
Thanks!
You are off base. Read the following for landlords:
(d) Qualified trade or business For purposes of this section?
(1) In general The term "qualified trade or business" means any trade or business other than?
(A) a specified service trade or business, or
(B) the trade or business of performing services as an employee.
---end quote---
So without additional clarification, we still don't know what constitutes a "trade or business" in the first place. [I can't wait...this is gonna be good!]
But in any event, I disagree with your suggestion that a passive activity is automatically NOT a trade or business.
MTW
Thanks. That's exactly what I wanted to know.
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