250 hours of rental services = QBI 20% deduction on rental income.
Rev. Proc. 2019-38 creates a safe harbor: if your rental enterprise has 250+ hours of rental services (maintenance, tenant coordination, advertising, collections) per year, and you keep contemporaneous logs, rentals qualify for the §199A 20% QBI deduction. Segregate residential vs commercial as separate enterprises to optimize.
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Front-load depreciation on real estate to slash current-year taxes.
Turn W-2 income into tax-free passive rental losses.
Defer capital gains indefinitely by rolling into bigger real estate.
Defer + eliminate capital gains via OZ funds.
Rent your home to your business up to 14 days/year — tax-free.
Deduct 20% of pass-through business income.
Slash self-employment tax on profits above ~$50K.
Expense equipment, vehicles, and property in year one.