199A rental to related entity and other non related entities - Spidell

199A rental to related entity and other non related entities

Log in to Post

Message Board 199A rental to related entity and other non related entities

This topic contains 1 reply, has 2 voices, and was last updated by Lynn Freer 3 months, 2 weeks ago.

  • Author
    Posts
  • #173706
    Anonymous

    What if you have an LLC that has one owner and rents 1/3 of a building to the owner’s 100% owned SSTB  S Corporation.  The other 2/3 of the property is rented to non related entities.  the rental LLC qualifies as a trade or business.

    The self rental would be treated as a SSTB similar to the S Corporation.  Could the other 2/3 of the net rental QBI be treated as non SSTB QBI?

     

  • #174472
    Lynn Freer
    Participant

    I believe this is correct but see (Treas. Regs. §1.199A-1(b)(14))