MinhT
Expert Alumni

Business & farm

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:

https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations

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