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I have been listening to an IRS webinar and done some additional reading. The simple reality it's basically a judgement call. There are not a few variables that can effect it as well and frankly it will take up far too much of my time to examine them to produce the correct QBI. The fact that these guys would seemingly qualify under Sec.162 doesn't entirely cut it and on and on. What would at first appear pretty simple falls into a quagmire of sorts. Needless to say I simply don't have the time do fool with it.

They would then have to rise to the level of a trade or business per section 162 as determined by case law.

Especially if they aren't very good at it!

Remember, a set of "books and records" does not mean they have to have an accounting program. An excel spreadsheet is books and records. The only thing I would advise if they are not doing it is to have a separate bank account for the rental activity. And reconciling it every month adda hours to the time spent on the rental activity. Tom Modesto, CA

Christian, the logging requirements are for the Safe Harbor only. Take a webinar or more on rentals. Soon. This could be a great niche for you. Just like keeping a mileage log, we have to educate our clients into keeping "books" and tracking time. Some tradesmen are getting onboard with listing their hours on their invoices; they've been doing it all along when billing hourly labor charges. Otherwise, train your client to ask and have vendor write it in on the invoice. Or, make his own note "2.5 hours per Joe via tel" on the invoice. Keeping all his vendor receipts is a great start. Have him hand out W-9s (mail them now for 2020 services already provided) and prepare the Forms 1099-MISC for him in January. I'm sure he knows his rental income and has the deposits to prove it and his notes in whatever form to track who's late.Give him a green ledger sheet for each rental for each year for tracking income and expenses.