If your business records are complete (such as your time and activity logs or similar document), then perhaps there is no need to elect the safe harbor. If you are already a real estate professional, then perhaps there is no need to seek safe harbor.
Your decision to aggregate your real estate activities will not not only ease the burden of meeting the material participation tests but also it will allow you to currently offset the losses from one rental activity against the income of another and then offset the remaining loss against non-passive-activity income. However, do you meet the material participation test for each rental property? If you do, then why decide to aggregate? Perhaps aggregation may make sense if you did not meet the material participation test for one of your rental properties, but there are other considerations too.
The aggregation election cannot be revoked once it is made. The aggregation election is binding for the tax year in which it is made and for all future years in which the taxpayer is a qualifying real estate professional. In years in which the taxpayer is not a qualifying taxpayer, the election will not have effect and the taxpayer's activities will be those determined under Treas. Reg. § 1.469-4.
While the aggregation election is normally binding, the aggregation election can be revoked for a year during which the taxpayer’s facts and circumstances change in a material way. If that happens, the election can be revoked by filing a statement with the original tax return for that year.
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