Section 199A

[swhiteheart1]

If taxpayer has:
Schedule "C" Income of 14,329
Residential Rent:
Gross 8,600
Maint 210
Insurance 497
Prop. Tax 1,268
Depreciation 4,061 6,036= 2,564
Vacant Business Land:
Gross Rent 60,000
Property Tax 1,985= 58,015

Schedule "E" 60,579

Question: Does the vacant business land rent of 58,015 qualify as QBI?

[Lion]

Does their activity in the land rise to the level of a trade or business? Or, do they meet the safe harbor that includes 250 hours?

[ATSMAN]

Lion is correct you have to look at the level of activity. I have 2 clients in the rural areas of MA that lease their land to cell phone tower companies for yearly rent between $14K to $20K. There is not real rental activity other than collecting the monthly rent checks and paying the quarterly land tax! The tower maintenance company does the snow removal and brush cutting around the towers. IMHO this does not meet the 250 hour.