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New Member
posted Jun 3, 2019 11:29:05 AM

Safe Harbor Election for Small Taxpayers - Removal?

I was messing around with Business Income and Expenses > Business Assets > Assets Being Depreciated.

Attempted to add on some home renovations, both greater than and less than $2500, but realized it was more logical to add them through home office expenses as assets applicable to the whole home.

This is just a regular sole proprietorship with a 20% home office (not a rental property). The renovations were for the whole house.

Turboxtax appears to have retained the attempted entry from Business Assets > Assets Being Depreciated as a form for Section 1.263(a)-3(h) Safe Harbor Election for Small Taxpayers with the home office address included. I can't make use of the safe harbor election (it won't let me deduct the renovations expenses all at once, don't understand why), and I can't remove the form either.

Is there any way to back out of the Safe Harbor Election entirely?

Going back into business assets > assets being depreciated and telling Turbotax "no" to did you buy any items for any business, rental...that cost $2500 or less in 2018 and then deleting all assets doesn't do it. Deleting the entire home office expense doesn't do it either. It feels buggy.


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1 Best answer
New Member
Jun 3, 2019 11:29:07 AM

It took several hours, but the way to eliminate this is:

Business Assets > Assets being depreciated

Review answers to annual elections questions

Did you buy items that cost $2500 or less? Yes

Can you deduct as expenses? Yes and Yes

Items all for $2500 or less? No

Did you make improvements to a building? Yes

Election for improvements? No

Describe the building you made improvements to? Remove all values.

This will clear out the form 1.263(a)-3(h). Then answers can be backtracked as necessary.

3 Replies
New Member
Jun 3, 2019 11:29:07 AM

It took several hours, but the way to eliminate this is:

Business Assets > Assets being depreciated

Review answers to annual elections questions

Did you buy items that cost $2500 or less? Yes

Can you deduct as expenses? Yes and Yes

Items all for $2500 or less? No

Did you make improvements to a building? Yes

Election for improvements? No

Describe the building you made improvements to? Remove all values.

This will clear out the form 1.263(a)-3(h). Then answers can be backtracked as necessary.

Level 1
Feb 21, 2020 1:27:07 PM

Well done!  Thank you.

New Member
Jul 15, 2020 10:04:21 AM

If rental property was the problem.

 

1.)Go into step-by-step forms (upper right corner of screen) 

2.) Manually delete each safe harbour form from individual properties under Schedule E.