Thank you for clarifying the issue for me. I appreciated the input for the TT staff. The largest portion of Line 19 ($35,000+) is due to new furnishings, appliances, etc. since a total renovation was done to the property. This is mostly what creates the loss. I chose to take the de minimis safe harbor election rather than depreciate the assets since they meet the requirements of the election. If I am allowed to take this election then I will proceed to finish up the return and file it. I just assumed that any rental loss was not allowed but based on your reply, the non passive activity designation will allow the loss. I just didn't want to be audited in the future for taking a loss that was not correct. Will the disallowed depreciation from the building and improvements be available to be carried forward to be used in future years or at time of sale?
