199A Mixed use building

Forum|Forum|6 years ago
February 15, 2020
3 replies
23 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

This topic has been closed for replies.

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."

Sign up

Login with SSO

Let's get you signed in

Login with SSO