199A Mixed use building

Forum|Forum|6 years ago
February 15, 2020
3 replies
19 views

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...

ProSeries Professional

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Best answer by Sashaa

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."

sjrcpa

Level 15

Consider whether it is a Qualified Business without resorting to the Safe Harbor.

The more I know the more I don’t know.

S

SashaaAuthor

Level 3

Thank you for that suggestion. 🙂

S

SashaaAuthorAnswer

Level 3

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."

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