I'm trying to understand how to calculate the maximum deduction allowed under the Safe Harbor for Small Taxpayers.
Total cost of property: $360,000 (from closing statement)
Land cost: $125,000 (from county tax assessment)
Safe Harbor maximum: (360,000 - 125,000) * 2% = $4700
is this correct? or can I use 2% of entire $360,000?
Thanks!
