Article Date:
August 2019


Word Count:
424

 

 

When Renting to a C Corporation Creates QBI


Question

 

In Q&A: Is a Triple Net Lease to a C Corporation QBI? you state that a non-triple net lease on a building rented to a C corporation can create qualified business income (QBI) for the rental property.

 

I am wondering if I am reading this right or not.

 

My client rents a commercial building to his C corporation. The lease is a standard lease with no triple net lease components. The rental meets the test as a Section 162 trade or business.

 

According to you, with the facts I presented, the net income from this rental qualifies as QBI.

 

Everything else I am reading keeps saying it won’t qualify if it’s a self-rental to a C corporation. Please shed more light ... Log in to view full article.

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