I have real estate rental activity which is not being considered for the pass through income deduction.

[abctax55 · Accepted solution]

E?

K-1?

Income in the phase out range?

The program isn't fully functionally yet.

There's also a box to check to "force" rental income to be QBI; Lacerte's official position is the rental income doesn't qualify.

Search for the many threads on the issue...

[George4Tacks]

Here is the magic bullet. It is in the General Information section up towards the top of Screen 18 for Individual

IRC Section 162 Trade or Business: 1=yes, 2=no [O] 

General Information                          Screen 18; Code 969

Make an entry to override the automatic determination if this activity is a trade or business under the definition of IRC Section 162. This will determine the automatic adjustment of the income/loss on Form 461

By default, a Schedule E is considered to not be a trade or business. An activity will be considered to be a trade or business if there is an entry indicating that the taxpayer is a real estate professional.