@AmeliesUncle wrote:
....While less than 250 hours CAN qualify as a Section 162 business, in my opinion, the farther you are away from 250 hours, the less likely the IRS will think it is a "Trade or Business". So if you are at 200 hours, maybe/probably. If you are 150 hours, maybe???......
Now, I have a question. Why would the IRS go through the trouble of researching and publishing a minimum hour requirement and incorporate that minimum into a safe harbor if a scenario existed where fewer hours would qualify? Following that line of reasoning, the IRS could easily have made the safe harbor 150 hours, or 100 hours, or 4 hours.
Maybe we should note that the safe harbor is applicable to a rental real estate enterprise and whether or not that activity would be treated as a trade or business, not some other activity.
