Do you want the Qualified Business Income Deduction with Rental Property for Landlords, then you need to keep a detailed contemporaneous log (that means document it as you do it) documenting the qualified 250 hours you put it managing your properties.
In this brief, one-time-only class taught by James and Jassen on January 29, 2021 they discuss what the tax deduction is and what you need to do to be able to get it.
According to the IRS:
“The taxpayer maintains contemporaneous records, including time reports, logs, or similar documents, regarding the following: (i) hours of all services performed; (ii) description of all services performed; (iii) dates of which such services were performed; and (iv) who performed the services. Such records are to be made available for inspection at the request of the IRS.”
So, you must log… on average… 21 hours per MONTH… of work done on your rental properties. This is PER PROPERTY… UNLESS you decide to group all your properties together as one enterprise as we discuss in the video.
Watch the short video and download the Excel spreadsheet log here:
Download the Excel version of the “Rental Real Estate Safe Harbor Log” so you can document the work you’ve done.
Download Rental Real Estate Safe Harbor Log
To get the details straight from the IRS, check out https://www.irs.gov/pub/irs-drop/n-19-07.pdf
Real Estate Investing Classes
Interested in learning more about real estate investing? Check out the list of real estate investing classes and we have a bunch of classes on bookkeeping, accounting and taxes for buy-and-hold real estate investors, house hackers and Nomads™.
