250 hours QBI update
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250 hours QBI update (by NE [PA]) Apr 15, 2019 7:31 AM
       250 hours QBI update (by WMH [NC]) Apr 15, 2019 7:33 AM
       250 hours QBI update (by Oregonwoodsmoke [ID]) Apr 15, 2019 8:10 AM
       250 hours QBI update (by plenty [MO]) Apr 15, 2019 8:34 AM
       250 hours QBI update (by S i d [MO]) Apr 15, 2019 9:03 AM
       250 hours QBI update (by cjl [NY]) Apr 15, 2019 9:05 AM
       250 hours QBI update (by Busy [WI]) Apr 15, 2019 9:06 AM
       250 hours QBI update (by 6x6 [TN]) Apr 15, 2019 3:55 PM

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250 hours QBI update (by NE [PA]) Posted on: Apr 15, 2019 7:31 AM
Message:

I'm still not sure I understand the whole hours tracking thing. Anyway, I met with my accountant this morning to pick up my taxes. I have two LLCs that I use for rentals. He wants me to track hours for one of them and not for the other. He said the reason for that is because the one we have up set up as a business. That is the one he doesn't care about the hours for. So whatever that means to you, hopefully it helps.

--174.201.x.xxx




250 hours QBI update (by WMH [NC]) Posted on: Apr 15, 2019 7:33 AM
Message:

I can't imagine it would ever be an issue for you NE as RE is all you do!! Rules is rules but I think the rule is to go after someone who has one unit or something and wants to write everything off...everyone's a landlord these days (AirBnb!) but not everyone is in the BUSINESS of landlording... --50.82.xxx.xx




250 hours QBI update (by Oregonwoodsmoke [ID]) Posted on: Apr 15, 2019 8:10 AM
Message:

Id track them both, even if he only wants one. Put the other number on file so you have it if the IRS can't decide what they want. --98.146.xxx.xxx




250 hours QBI update (by plenty [MO]) Posted on: Apr 15, 2019 8:34 AM
Message:

im not doing anything different. --174.155.xx.xxx




250 hours QBI update (by S i d [MO]) Posted on: Apr 15, 2019 9:03 AM
Message:

My understanding on hours tracking is that you must record a minimum of 250 qualified business hours to meet the safe haven rule. This is to prevent a hobbyist from claiming "business income" deductions (i.e. "I use my 2019, 300 horsepower, 19 foot bass boat to catch and sell fish as a business"!)

Most of us are not hobbyists, so we should be fine from that perspective.

The other concern is to segregate business activity from investing activity.

Example:

1) managing contracts rehabbing a property = business activity.

2) evaluating a new property to purchase = investment activity.

There's a list of examples the IRS has published to give guidance on this. As always seek advice from a qualified Pro, but if it's not clear still then get a 2nd opinion.

--173.20.xxx.xxx




250 hours QBI update (by cjl [NY]) Posted on: Apr 15, 2019 9:05 AM
Message:

Clear as mud:

Here are the three requirements:

1. At least 250 hours of services are performed each taxable year with respect to the enterprise

ē Services include services performed by owners, employees, and independent contractors. It also includes time spent on maintenance, repairs, collecting rent, paying expenses, providing services to tenants, and efforts to rent the property.

ē Any hours spent by someone acting as an investor or doing investment-related activities donít count toward the 250 hours.

2. You must maintain separate books, records, and bank accounts for the rental real estate enterprise(s).

3. If you lease property under a triple net lease or use the property as your own residence for any part of the year, it isnít eligible for the safe harbor.

ē A triple net lease is a lease agreement where the tenant is responsible for the propertyís expenses. Expenses can be property taxes, insurance, and maintenance. --209.217.xxx.xx




250 hours QBI update (by Busy [WI]) Posted on: Apr 15, 2019 9:06 AM
Message:

Not sure the rehabbing counts... incentive to get the unit in service, then do repairs... not that lawmakers were thinking that, just it would shake out that way....

Again, Iím not sure. Too dang many safe harbor this, safe harbor that!! Gets jumbled in my wee little brain. --70.92.xxx.xxx




250 hours QBI update (by 6x6 [TN]) Posted on: Apr 15, 2019 3:55 PM
Message:

Too dang many safe harbor this, safe harbor that!! Gets jumbled in my wee little brain.

I am with you on that Busy. --73.120.xx.xxx



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