Cattlerancher, thanks for response.  You stated "The $7,800 moving cost SHOULD have been applied to the basis of the house along with this $28,500 renovation cost." This sounds like I will have to undo the 2015 Sec 179 deduction for the $7800 moving expense and start depreciation on 2016 return.  Is this possible?  Is my understanding correct? Can I use the $28500 as the basis for depreciation? ... View more

The house is an 80 year old, stick built, wooden farm house.  The $7800 expense (used Sec 179 on 2015 tax ) was the cost to move the house to our property and place it on a pier foundation.  It is not a trailer/manufactured home. It is intended for long term use.  Plans include tenet housing and/or a Bread & Breakfast type rental.  The $28500 spent in 2016 was for things like electrical rewire and hookup, plumbing redone, new roof, septic system, HVAC, etc. Is "Safe Harbor" option feasible.  TurboTax states that one should think carefully about invoking this option because it affects your options going forward and is difficult to reverse. ... View more