- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Any advice on how to separate the Real Estate Enterprise for the 199A Rental Safe Harbor in the following situation?
1 Rental is a Building with multiple units of which is some are Commercial businesses and some are residential apartments. (one set of books & records)
1 Rental is a Room Rental in taxpayer's primary residence. (second set of books & records)
For the aggregation requirement that commercial and residential cannot be combined into one enterprise, yet separate books and records must be kept for each...
Best Answer Click here
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Consider whether it is a Qualified Business without resorting to the Safe Harbor.
The more I know the more I don’t know.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you for that suggestion. 🙂
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
SOLVED!
Apparently I missed it the first 20 times I read the safe harbor...
From the second to the last paragraph on page 4 of Rev. Proc. 2019-38
"An interest in mixed-use property may be treated as a single rental real estate enterprise or may be bifurcated into separate residential and commercial interests. For purposes of this revenue procedure, mixed-use property is defined as a single building that combines residential and commercial units. An interest in mixed-use property, if treated as a single rental real estate enterprise, may not be treated as part of the same enterprise as other residential, commercial, or mixed-use property."
