Farm Rental 4835

[Snaggletooth]

If you are renting your farm to a farmer, how could this rent NOT be QBI?

[Twin Turbo Z]

We have some 4835's that qualify and some that do not. Depends on owner involvement.

[Snaggletooth]

Thanks for the response. However, I believe it not only depends on involvement of the owner, but also of the lessee. If either is considered a business, then the property qualifies. Thus if you are renting to a farmer, the property qualifies without question. Possible exceptions? I dunno. Maybe renting to a hunting group who hunts for sport....but again, I think this would be a Sch E since it does not depend upon production.

[Twin Turbo Z]

The IRS Farm guide spells a lot of your concerns out. We have land owners who all they do is rent out their land to other farmers. Standard rental expenses. Those are on E. Then you have land owners who rent out land and also farm some too. Or go halves with other farmers. Those are 4835. If its on a 4835 the involvement by the owner "should" easily qualify for QBI. Schedule E, not so much.

[Snaggletooth]

Turbo charged - This is kinda what I thought. 4835 is a slam dunk - Other Sch E is maybe/maybenot.

Thanks.