Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Showing results for 
Search instead for 
Did you mean: 
New Member

Safe harbor and new LLC

I started my LLC last year for my rental property. I had more expenses than a profit for the year, I am confused about the safe harbor. Does it not matter because I had more than double the expenses than the rental income? Please help!

1 Reply
Expert Alumni

Safe harbor and new LLC

it is quite frequent to have rental losses in the first few years of rental due to repairs, depreciation, property taxes and mortgage interest.

There are two safe harbor elections that you can make: the de minimis safe harbor election and the safe harbor election for small taxpayers.

Please read this IRS document for more information:

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings