How Rental Real Estate Owners Can Qualify for the QBI Deduction

ARTICLE | May 15, 2026

The qualified business income (QBI) deduction -- which allows eligible business owners to deduct up to 20% of their QBI - was made permanent under the One Big Beautiful Bill Act of 2025, giving rental real estate owners a compelling reason to take a closer look at this tax-saving opportunity. But eligibility is not automatic. The IRS has established a specific safe harbor for rental real estate enterprises, complete with recordkeeping requirements and activity thresholds that must be met. Understanding where your rental activities stand could make a meaningful difference at tax time. 

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