Welcome back! Ask questions, get answers, and join our large community of tax professionals.
Showing results for 
Search instead for 
Did you mean: 

HOA President - time spent count towards 250 QBI Hours?

Level 1

Hi -

Client owns one rental unit in a multi-unit building, and serves as non-compensated President of home owners association.  Does entire time devoted to HOA President activity count towards the 250 hour threshold, or does it need to be pro-rated by number of units?

With thanks in advance you for houghts!

0 Cheers
2 Replies 2
Level 12

I wouldn't count any of it, because he is there in a fiduciary capacity to serve all the owners, even if it's to his detriment.  (Should they raise the fees to improve life for residents, or keep them low to help landlord profits?)  

Well, OK,  I would count the actual time spent at open meetings, since he needs to know what is happening.

I hope it's not in his IRA.  We have an "owner" in our association who used to spend a lot of time managing her IRA's property, until someone suggested it might cause a problem if IRS found out about it.  

Level 15

Do you know it can be a Qualified trade or business without using the 250 hour safe harbor?

0 Cheers