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Trump Sets Final Rules for QBI


ETax847

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Here is a link to the actual notice:  https://www.irs.gov/pub/irs-drop/n-19-07.pdf

One section says that residential and commercial rentals cannot be commingled in the same entity and qualify.

If true, this will knock out one my larger clients out because while I am reasonably confident that they could meet the 250 hours for all rentals combined,

its doubtful that they will be able to meet 250 hours if commercial and residential rentals have to segregated.🙄

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It will knock out all my clients if they have to keep a log of their time spent, when, what they did, etc.  It's hard enough getting them to understand the necessity of mileage logs.  And the "separate books and records" means what?  Most of them give me a handwritten sheet where they list taxes, utilities, repairs, etc (always forget the rental income so I have to ask).  I guess this is a separate record, likely gleaned from their personal checkbooks.  What does everyone think about that?

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On ‎1‎/‎18‎/‎2019 at 8:38 PM, SaraEA said:

It will knock out all my clients if they have to keep a log of their time spent, when, what they did, etc.  It's hard enough getting them to understand the necessity of mileage logs.  And the "separate books and records" means what?  Most of them give me a handwritten sheet where they list taxes, utilities, repairs, etc (always forget the rental income so I have to ask).  I guess this is a separate record, likely gleaned from their personal checkbooks.  What does everyone think about that?

Separate books shouldn't be that difficult. I have a few partnerships and individuals that invest in rental real estate. Each of them keeps records for each property that includes the income received, itemized expenses with receipts, depreciation schedules, etc. I agree with keeping a log of the hours of activities will cause some problems. I would propose if the property owners want the deduction they'll keep the records. 

I would like to see the statement that folks create for the clients to sign.

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