Test $-$ Intermediate Rental Real Estate $(2025)$

Qualified Business Income Deduction

Question $13$ of $15.$

Which taxpayer can potentially claim the qualified business income deduction by electing the safe harbor provision to treat a rental real estate enterprise as a trade or business under Section $199$A of the Internal Revenue Code $($IRC$)?$ Furthermore, who would benefit from making this election?

$$ Anthony. He owns two rental properties and spends an average of one to two hours per week on rental services for his rental real estate enterprise.

$$ Evan. He owns five rental properties and spends at least ten hours per week on rental services for his rental real estate enterprise. His activity has operated at a net loss for the past two years, and he does not anticipate making a profit this year. Lance. He owns ten properties in strip shopping centers, rented under a triple net lease agreement where tenants are esponsible for taxes, fees, insurance, and maintenance.

Thomas. He owns fourteen rental properties and spends at least ten hours per week on rental services for his rental real state enterprise.

Mark for follow up

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