Do I qualify for the QBI safe harbor?
You can use the QBI safe harbor if you meet all of these requirements:
- The property was not your residence for any part of 2025.
- Separate books and records were maintained to reflect rental income and expenses.
- 250 or more hours of rental services were performed in one of the following time periods:
- During 2025 (for rental properties in use for less than 4 years).
- Annually in any 3 of the prior 5 tax years (for rental properties in use for 4 years or more).
- You consistently kept records regarding the following:
- Hours of all services performed
- Description of services performed
- Dates on which such services were performed
- Who performed the services
- The property was not under a triple net lease.
- You didn't take the home office deduction for the property.
