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Is the 250 hours a year to year test?

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Level 4

Is the 250 hours for rentals to qualify for the QBI year to year. In other words can they qualify one year and not the next, etc.?

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I would take a look at this notice from the IRS:

Notice 2019-07

https://www.irs.gov/pub/irs-drop/n-19-07.pdf

It states on page 7 for item B:

(B) For taxable years beginning prior to January 1, 2023, 250 or more hours of rental services are performed (as described in this revenue procedure) per year with respect to the rental enterprise. For taxable years beginning after December 31, 2022, in any three of the five consecutive taxable years that end with the taxable year (or in each year for an enterprise held for less than five years), 250 or more hours of rental services are performed (as described in this revenue procedure) per year with respect to the rental real estate enterprise;

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I would take a look at this notice from the IRS:

Notice 2019-07

https://www.irs.gov/pub/irs-drop/n-19-07.pdf

It states on page 7 for item B:

(B) For taxable years beginning prior to January 1, 2023, 250 or more hours of rental services are performed (as described in this revenue procedure) per year with respect to the rental enterprise. For taxable years beginning after December 31, 2022, in any three of the five consecutive taxable years that end with the taxable year (or in each year for an enterprise held for less than five years), 250 or more hours of rental services are performed (as described in this revenue procedure) per year with respect to the rental real estate enterprise;

“In an infinite Universe anything can happen.”
― Douglas Adams

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Accept as solution"

View solution in original post

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