De Minimis Safe Harbor Election is used to expense assets. You must mean Safe Harbor 199A.
Yes.
On Tuesday, September 24, 2019, the Treasury Department (“Treasury”) and the Internal Revenue Service (the “IRS”) released Revenue Procedure 2019-38 (“Rev. Proc. 2019-38”) that provides a safe harbor under which a rental real estate enterprise will be treated as a trade or business for purposes of section 199A of the Internal Revenue Code (the “Code”). Rev. Proc. 2019-38 finalized, with certain modifications, a proposed version of a revenue procedure containing such a safe harbor in Notice 2019-07, 2019-09 IRB 740. The safe harbor in Rev. Proc. 2019-38 (and previously in Notice 2019-07) was created out of Treasury and the IRS’s awareness of the uncertainty that certain taxpayers had regarding whether an interest in rental real estate rises to the level of a trade or business for purposes of section 199A, which stems from the Section 199A treasury regulations generally adopting the facts and circumstances trade or business test under section 162.
