Under the new tax reform, Section 199A has been established to provide qualifying individual taxpayers and pass-through entities with a tax deduction of up to 20 percent of qualified business income (QBI). Section 199A also creates a “safe harbor” for owners of rental properties. If the filer qualifies for the safe harbor, the filer’s rental…
Rental Properties
Rental Property as a Business Yields Big Benefits
If your rental property activity meets the definition of a trade or business activity, then your rentals produce the best possible tax benefits. In general, you report your rental properties on Schedule E of your tax return. When your activity rises to the level of a business, you continue to report the rentals on Schedule…