This is very helpful information.
But what about using the SHST election?
Would a Special Assessment tax from a city for a subdivision (e,g, to improve street lighting) have to be included in the total that might disqualify the SHST election (because it exceeds 2% of the unadjusted basis of the building)?
If it is included in this total, I assume that it could then be expensed in one year, like any building improvement would be under the SHST, right? (assuming the 2% limit is not exceeded due to the tax).
In that case, would the tax amount still have to be added to the (land or building's) basis or does the SHST election override this?
More generally, if ANY building (or land?) improvement (e.g. cost of a new hardwood floor) is expensed under the SHST instead of capitalized, is it still added to the building's (unadjusted) basis? (I don't think so.)
I guess I'm asking what kind of costs can be expensed under the new Small Taxpayer Safe Harbor in one year and would these affect the land or building basis for a rental property in any way?
(e.g. what about mortgage interest? maintenance and repair costs? building improvements? property tax? etc.)
The IRS pubs I've read aren't very clear to me.
(e.g. https://www.irs.gov/businesses/small-businesses-self-employed/tangible-prop[product key removed]atio... )
