If a real estate LLC has both active and non-active members, do I allocate Qualified Business Income to the active members only?

[TaxGuyBill · Accepted solution]

Nope.  It the LLC qualifies for the QBI, it goes to all members, regardless if they are active or not.

[abctax55]

The determination is made at the entity level, and the specifics provided to the members/shareholders/etc via the K-1.

This is totally different from the rules for active/passive participation....which is why my head hurts

[George4Tacks]

Yes, but only one of the reasons the head hurts. This season my whole being hurts.

[abctax55]

And WE use Lacerte...it could be worse :smiling_imp:

[nlmoline-cpa1]

Thank you all for responding to my question.  I really appreciate it.

[abctax55]

HEY...thanks for coming back and saying thanks !  We don't get a lot of that :smile: