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Where is the input field for Sch E trade or business if the override is listed under QBID input?

dmncpa
Level 1

Schedule E input indicates that the classification of a rental property as a qualified trade or business is automatic and to enter a 1 or 2 to override.    I am only able to invoke the classification if a an override is entered (1 in this case).  Where is the input that establishes the rental property is a 162 business?  

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George4Tacks
Level 15

It was there in a previous version, but has gone away. I guess they like the current 1 or 2 choice you picked. Press F1 at that entry to see:

Business is a Qualified Trade or Business: 1=yes, 2=no [O] 
Schedule E Screen 18; Code 451

The ownership and rental of real property doesn’t, as a matter of law, constitute a trade or business, and the issue is ultimately one of fact in which the scope of your activities in connection with the property must be so extensive as to give rise to the stature of a trade or business. The program defaults to not including rental in the calculation of the qualified business income deduction. However, if the rental is nonpassive, the program will include it unless a foreign address is entered or the “Investment” box is checked. Use the field to override the default.


Here's wishing you many Happy Returns

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1 Comment 1
George4Tacks
Level 15

It was there in a previous version, but has gone away. I guess they like the current 1 or 2 choice you picked. Press F1 at that entry to see:

Business is a Qualified Trade or Business: 1=yes, 2=no [O] 
Schedule E Screen 18; Code 451

The ownership and rental of real property doesn’t, as a matter of law, constitute a trade or business, and the issue is ultimately one of fact in which the scope of your activities in connection with the property must be so extensive as to give rise to the stature of a trade or business. The program defaults to not including rental in the calculation of the qualified business income deduction. However, if the rental is nonpassive, the program will include it unless a foreign address is entered or the “Investment” box is checked. Use the field to override the default.


Here's wishing you many Happy Returns
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