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Do I need to sign Rental Real Estate Safe Harebor Statement?

When entering rental income(renting out a room from my house where I live) and expenses on schedule E, I chose to expense instead of depreciate a new piece of furniture (<$2,500) that I bought in 2019. When I'm printing out the forms for filling, I found the "Rental Real Estate Safe Harbor Statement" that asking for my signature. It says "The property was not used as a residence for any part of the year." "250 or more hours of rental services were performed with respect to the rental enterprise." I don't want to sign it as these two requirements don't apply to me. Does this mean I can't expense the furniture? Thanks!

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Level 15

Do I need to sign Rental Real Estate Safe Harebor Statement?


@delan168 wrote:

 Does this mean I can't expense the furniture?


Not necessarily, but you somehow managed to generate the wrong statement (the one you are referring to is for the QBI (Section 199A) deduction). 

 

Regardless, in another thread you mentioned you were renting at a rate that is below fair market value. If that is, indeed, the case then each day you do so is considered a personal use day and no deductions are allowed as a result (other than Schedule A deductions such as mortgage interest and property taxes).

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Level 15

Do I need to sign Rental Real Estate Safe Harebor Statement?


@delan168 wrote:

 Does this mean I can't expense the furniture?


Not necessarily, but you somehow managed to generate the wrong statement (the one you are referring to is for the QBI (Section 199A) deduction). 

 

Regardless, in another thread you mentioned you were renting at a rate that is below fair market value. If that is, indeed, the case then each day you do so is considered a personal use day and no deductions are allowed as a result (other than Schedule A deductions such as mortgage interest and property taxes).

View solution in original post

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