199A - Is a Rental a Trade or Business (Case Law & Discusses Safe Harbor)
Author: A.J. Reynolds
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
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
