Services performed by an employee are treated as being related to a real estate trade or business if the employee performing the services has more than a 5% ownership interest in the employer.

Question

Quizplus · Accepted Answer

This is stated in IRS Revenue Procedure 2019-38, which provides guidance on the qualified business income deduction for taxpayers with income from a real estate trade or business.

Services Performed by an Employee Are Treated as Being Related