hedgeslaw
Level 3

I totally agree with your statements. Participation is NOT required for QBI.

It is my understanding that to be eligible for QBI deduction, the rental activity must either (1) rise to the level of a trade or business (rental is operated continuously, regularly with a profit motive and substantial activity such as making repairs, negotiating lease terms, collecting rent etc. that under the facts and circumstances it rises to the level of a trade or business) or (2) be a Sec 162 trade or business or (3) met the requirements of one of the 2 statutory Safe Harbors.

ProSeries has a series of check boxes in the QBI section of rental input sheets to trigger the QBI calculation. There is check box for "Is this activity a qualified trade or business?" That language is appropriate and will rigger the QBI calculation. Then there are 2 more check boxes for the 2 statutory Safe Harbor elections.

I don't see how to mark your answer SOLVED

I now realize I was working on an older tax return that asked a different and misleading question when I wrote this suggestion.

Thanks for helping me clear this up for myself. I was thinking that mere material participation was enough to qualify the renal operations.