Joel Posted March 8, 2020 Report Posted March 8, 2020 Does land rental (not farm land rental) received by a general partner in a limited partnership qualify as QBI income? I think so, but would appreciate verification before I question the preparer of the K-1 as the partnership did not report the amounts as QBI Quote
Lee B Posted March 8, 2020 Report Posted March 8, 2020 Not enough information, but it would be questionable. Quote
EricF Posted March 9, 2020 Report Posted March 9, 2020 I do not believe land rental qualifies as a Section 162 trade or business, a requirement for QBI (with real estate rentals having some other thresholds and requirements.) A trade or business has been held by courts to require regular, systematic and continuous activity, something is rarely part of rental of land. Quote
michaelmars Posted March 9, 2020 Report Posted March 9, 2020 see safe harbor rules ie does he put in more than 250 hours on it? Quote
Terry D EA Posted March 10, 2020 Report Posted March 10, 2020 I didn't think there was a clause for land only rental in QBI. Real Estate Rental Activities is what is in question to qualify for QBI. Nothing I read stated there must be a building on it. Now I agree for just land how could the 250 hours be met? That would be a tough sale. JMHO Quote
Lion EA Posted March 10, 2020 Report Posted March 10, 2020 Doesn't have to be safe harbor; although, that would cinch it. Rise to the level of a trade or business. How much land is it!! But, it could happen. Ask questions. If the land is in a partnership, the founding partners could've thought they saw the possibility of making a business out of it. What do they rent it out for? Parking near a stadium? Quote
Joel Posted March 10, 2020 Author Report Posted March 10, 2020 Thanks for all the comments. I have rethought the subject and agree it probably is not QBI. Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.