THANK YOU for your quick response. I understand your answer. In reply to your request for detail, the house in question is a large single family home and in the long term shall remain so. I finished enough of the house to rent out most of the first floor while the upstairs was sectioned off. When I finish the second floor this year it will still be a single family home only with more square footage. I plan to put the house on the market as soon as it is ready.
I have another question. Should I post this separately? My husband and I file Married Filing Separately because he wants nothing whatsoever to do with my rental properties including tax filing. I also have a part time job. I spent much of my year dealing (actively participating) with a different property that is a 2 family rental and lost about $25,000. Yes, $25,000. It doesn't make a difference if I check off QBI or not, it doesn't let me take the loss other than a small portion of the loss off setting a small profit in 2 other buildings. I spent >750 hours dealing with this property but not 750 hours each with all 4 properties. Even though I Actively Participate in all of them, I don't Materially Participate in all 4 separately. Is there an option to have this loss qualify for a partial refund perhaps through a "Safe Harbor"? I went to an accountant to ask questions but she wasn't that familiar with the new Safe Harbors. Thank you for your time.
