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Land Rental and QBI


Joel

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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 

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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.

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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?

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