Solved: Do the limits for the Safe Harbor Election for Small Taxpayers apply for each rental property or all in total?
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Do the limits for the Safe Harbor Election for Small Taxpayers apply for each rental property or all in total?

The safe harbor rules say the total amount of repairs, maintenance, and improvements do not exceed the lesser of $10,000 or 2% of the unadjusted cost basis of the property.  I have more than one rental property.  Do these limits apply separately to each property, or to the sum for all the properties combined?  Is the cost basis considered for each property or the sum of the cost for all the properties?

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Do the limits for the Safe Harbor Election for Small Taxpayers apply for each rental property or all in total?

The safe harbor election applies to each eligible building property to which you are applying the election.  In other words, the $10,000 or 2% limitation is determined on a building by building basis.

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New Member

Do the limits for the Safe Harbor Election for Small Taxpayers apply for each rental property or all in total?

The safe harbor election applies to each eligible building property to which you are applying the election.  In other words, the $10,000 or 2% limitation is determined on a building by building basis.

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