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Self-Study Courses

199A - Is a Rental a Trade or Business (Case Law & Discusses Safe Harbor)

1 CPE Credits $65.00/credit hour
★ ★ ★ ★ ☆ 4.3 (3 ratings)

Is a simple single-family rental eligible for the Qualified Business Income (QBI) deduction under Section 199A? This course dives deep into what qualifies as a trade or business for 199A purposes. We’ll explore whether rental properties meet the definition, backed by case law, regulations, and administrative guidance.

You’ll gain clarity on the critical factors—continuity, regularity, and profit motive—that determine trade or business status, and why material participation isn’t always required. We’ll also analyze Revenue Procedure 2019-38, the Final Safe Harbor Rules for real estate activities, and discuss practical implications for tax planning.

If you advise clients with rental properties, this course is essential for understanding how to apply 199A rules confidently and accurately. Register now and ensure your clients maximize their QBI deduction opportunities.

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Publication Date: April 2026

Designed For
All Tax professionals with Clients owning Rental Properties

Topics Covered

  • 199A - Is a Rental a Trade or Business
  • Substantial Authority
  • Blue Book Explanation
  • Regulations
  • 199A FAQ
  • Interpret case law on trade or business
  • Code Sections
  • Private Letter Ruling
  • Triple Net Leases
  • Revenue Procedure 2019-38 - Safe Harbor

Learning Objectives

  • Determine whether a rental property qualifies as a trade or business under Section 199A
  • Apply Revenue Procedure 2019-38 Safe Harbor rules to real estate activities
  • Explain key case law and administrative guidance defining trade or business status
  • Explain the profit motive requirement and its role in distinguishing trade or business activities
  • Evaluate substantial authority and regulatory interpretations impacting QBI eligibility

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None

Instructor

A.J. Reynolds

Recipient of the 2024 Excellence in Education Award from the National Association of Enrolled Agents.

A.J. Reynolds, EA has over thirty years of experience encompassing various areas of taxation. Though his practice centers on Individual, Business, and Estate Tax preparation, A.J. focuses a portion of his practice to IRS Representations. As diverse as his specializations, A.J.’s clientele, too, ranges from average workers to Fortune 500 executives. Additionally, A.J volunteers his time with the Iowa Legal Aid’s Managing Attorney assisting in Tax Court cases and assorted income tax issues.

A.J. brings his everyday “in the trenches” experience to seminars and webinars for multiple organizations to assist attendees with real issues affecting tax professionals.

A.J. started his tax career with a national CPA firm in San Diego, CA after proudly serving for five years in the United States Navy onboard the Guided Missile Destroyer USS Callaghan. While onboard the destroyer, the ship executed many missions in the Straits of Hormuz off the coast of Iran.

Outside of his tax practice, A.J. is a member of the Diocese of Sioux City Priests’ Pension & Welfare Board and the Investment Advisory Board for the Diocese. When not working, his time is spent in various activities, including traveling with his wife and their two children.
$65.00 / 1 CPE
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