Recorded: Tuesday, August 6, 2019
Historically, it hasn’t been easy to determine whether a rental real estate enterprise is considered a “trade or business” for the purposes of Section 199A. So the IRS came out with Notice 2019-7 to make this determination a little clearer.
The new safe harbor rule allows individuals and entities that own rental real estate directly or through a disregarded entity to treat the rental real estate enterprise as a trade or business for purposes of claiming the Qualified Business Income (QBI) deduction as long as certain requirements are met. During this hour-long presentation, Dana Lee, CPA, a senior manager on Rea & Associates’ tax team will walk you through the requirements while providing a few tips to make your life easier along the way.
If you own rental real estate, view the recording of this webinar to learn:
- What requirements you must now meet to claim the QBI deduction.
- How to ensure that your logs comply with the IRS’s “contemporaneous records” mandate.
- Which rental activities are allowed to make up your annual 250 hours (minimum) worth of services related to your rental real estate enterprise and which activities no longer apply.
- Additional new safe harbor provisions related to your rental real estate property to consider when filing your 2019 tax return.
Download The Rental Real Estate Hours Log
We have put together a sample template to help you record your when work was performed, how many hours were committed to a project, who performed the work and what was done.