TaxGuyBill
Level 15
12-06-2019
08:18 PM
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This is also just a "Safe Harbor", which means that if the requirements are met, the IRS will not even question it.
It also says "Failure to satisfy the requirements of this safe harbor does not preclude a taxpayer from otherwise establishing that a rental real estate enterprise is a trade or business for purposes of section 199A."
So if the Safe Harbor is NOT met, it still MIGHT qualify, but the IRS will look at the specific facts-and-circumstances at it.
It also says "Failure to satisfy the requirements of this safe harbor does not preclude a taxpayer from otherwise establishing that a rental real estate enterprise is a trade or business for purposes of section 199A."
So if the Safe Harbor is NOT met, it still MIGHT qualify, but the IRS will look at the specific facts-and-circumstances at it.
