@AmeliesUncle wrote:
.....perhaps your analysis of the situation may different from another person, or the IRS. So that is why the IRS gives "Safe Harbors", so there are fewer 'arguments' if the specific facts-and-circumstances qualify or not.
I understand that, but there is almost always a rationale for selecting a specific number (as in 250 hours) as there must be for selecting $2,500 as the initial figure for the de minimis safe harbor election.
Regardless, again, there is significance is the sense that this particular safe harbor is only applicable to real estate activities and not any other form of activity. Thus, in my opinion, not being able to satisfy the safe harbor but, instead, trying to make a case based upon facts-and-circumstances for this activity is not a great approach (I believe this posture is particularly cogent given the fact that the IRS allows almost anything to count toward the minimum 250-hour requirement).
