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Section 199A Real Estate Calculator

Rental real estate may qualify for 20% QBI deduction.

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199A deduction

$36,000

Base deduction (20% of QBI)

$36,000

Wage/UBIA limit

$200,000

How the math works

Base = 20% of QBI. Above threshold, limited to max(50% W-2, 25% W-2 + 2.5% UBIA).

$180k × 20% = $36k base. UBIA limit: 2.5% × $8M = $200k. Deduction = $36k (unlimited by UBIA).

How to Use

  1. Enter net rental income (QBI).
  2. Enter taxable income.
  3. Enter W-2 wages paid.
  4. Enter UBIA of qualified property.
  5. Read 199A deduction.

Frequently Asked Questions

Qualifying rental?

Must qualify as trade or business (safe harbor: 250+ hours/year of rental services). Triple-net leases typically excluded. Short-term rentals often qualify. Small rentals may rely on Section 469 rental enterprise aggregation election.

Deduction limits?

Below threshold ($183k single/$364k MFJ 2024): 20% of QBI. Above threshold: limited to greater of 50% of W-2 wages or 25% of wages + 2.5% of UBIA. Real estate often limited by UBIA test (depreciable basis).

Planning?

Aggregate multiple rentals to boost wages/UBIA. Elect rental enterprise safe harbor. Pay W-2 wages to family members. Maintain UBIA through CapEx vs expensing. Watch thresholds for planning at year-end.

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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