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QBI Phaseout Rental Calculator

QBI phases out for higher income. This calculator tests.

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QBI deduction

$15,000

Unlimited (pre-phase) deduction

$15,000

Phase-out reduction

$0

How the math works

Pre-phase: 20% of QBI. In-phase: sliding limit. Post-phase: min of 20% QBI or greater of 50% W-2 or 25% W-2 + 2.5% UBIA.

On $75k QBI at $450k income (in phase): $15k unlimited. $0 W-2 + 2.5% × $2M UBIA = $50k limit. No reduction. QBI deduction $15k. High-basis rentals retain deduction despite phase-out.

How to Use

  1. Enter rental QBI.
  2. Enter taxable income.
  3. Enter W-2 wages of rental business.
  4. Enter property basis (UBIA).
  5. Read QBI deduction.

Frequently Asked Questions

Phase-out ranges?

2025: MFJ $394k-$494k, Single $197k-$247k. In-phaseout: gradual limitation based on W-2 wages and property basis. Below: full 20% QBI. Above: calculation using greater of 50% W-2 or 25% W-2 + 2.5% UBIA.

Rentals as QBI?

Rental real estate qualifies as 'qualified trade or business' if meets 250-hour safe harbor or facts/circumstances. Most investment properties qualify. Pure passive real estate (single rental, no operations): more questionable. Safe harbor recommended.

UBIA?

Unadjusted Basis Immediately After Acquisition. Original cost basis of qualified depreciable property still in service. Used in 2.5% UBIA + W-2 phase-in calculation. High-basis new properties get significant deduction preserved.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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