Question: Mama's 1/2 of the purchase price of the house in 1978 - (minus) 1/2 of the value of the land in 1978 (which I figured at 1/3 of the total cost of the property) + 1/2 of the improvements over the years + 1/2 of the FMV on the date Daddy died.
Please confirm that!!!
- Yes, this is the correct cost basis of the house without the land.
Question: In that section I answered that the original use of the item began with me and I would take the 100% special depreciation allowance. It did not mention Safe Harbor. But I "assume" that is what this is?
- No. You should say 'No' to special depreciation and then remove those assets (delete them). Then go to 'Other Expenses' on the rental and list the items there to use the DeMinimis Safe Harbor and simply take the $500 expense without listing them as assets. If there is more than one asset you should keep the list with your tax records.
@carolynarose77
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