Real Estate Tax Rules Explained: Material Participation, Qualified Business Income and Net Investment Income Tax
Real estate tax outcomes often hinge on three separate rule sets that people accidentally mix together:
01
PASSIVE ACTIVITY LIMITS( SECTION 469)
02
QUALIFIED BUSINESS INCOME( QBI) DEDUCTION
03
NET INVESTMENT INCOME TAX( NIIT)
A small mistake can change whether a loss is usable this year, income qualifies for a potential 20 % deduction or if a 3.8 % surtax applies, so it’ s important to understand each rule to avoid a costly impact.
Learn more about these rules to ensure you take the best strategic step forward.
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