1 An elderly customer lives in her house on 82 acres that her family had formerly farmed - about 50 years ago.
She now rents 42 of the acres for a flat annual fee to a neighboring farmer. I have been putting this on an "E".
Doesn't seem to qualify for the safe harbor - the time it takes her to cash the monthly rent checks is all that's involved.
2 A different customer's parents (in another state) both died last year. The family farm was divided among the four siblings.
One of them has taken over the farm & each sibling rents their share of the land to him.
My customer is not involved in the operation of the farm, spends no time on it & gets a 1099 from her sib. I put the rent on an "E".
Was wondering if I'm handling this right. Might they qualify for QBI ? Thanks for comments
She now rents 42 of the acres for a flat annual fee to a neighboring farmer. I have been putting this on an "E".
Doesn't seem to qualify for the safe harbor - the time it takes her to cash the monthly rent checks is all that's involved.
2 A different customer's parents (in another state) both died last year. The family farm was divided among the four siblings.
One of them has taken over the farm & each sibling rents their share of the land to him.
My customer is not involved in the operation of the farm, spends no time on it & gets a 1099 from her sib. I put the rent on an "E".
Was wondering if I'm handling this right. Might they qualify for QBI ? Thanks for comments
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