Qualified Business Income Deduction - Rental or Real Estate Income

Per the IRS Qualified Business Income Deduction webpage:

Solely for the purposes of ยง 199A, a safe harbor is available to individuals and owners of passthrough entities who seek to claim the deduction under section 199A with respect to a rental real estate enterprise. Under the safe harbor a rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction if certain criteria are met. For more information, on the safe harbor see News Release IR-2019-158.

To complete the Qualified Business Income (QBI) section for rental property in TaxAct:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Rent or Royalty Income dropdown, then click Real estate rental income.
  3. Click + Add Schedule E, Pg 1 to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  4. Continue with the interview process until you reach the screen titled Qualified business income deduction information, and click the checkbox next to the applicable statement.
  5. On the second and third screens titled Qualified business income deduction information, use the data entry fields to enter your information.

Related Links

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.