Safe Harbor for Small Taxpayer election wording for rental property

Oct 04, 2015 1 Replies

In order to claim the Safe Harbor for Small Taxpayer election, the statement must be titled, "Section 1.263(a)3(h) Safe Harbor Election for Small Taxpayers" and include the taxpayer's name, address, taxpayer identification number, and a description of each eligible building which the taxpayer is applying the election.



Name, address, and TIN is pretty self-explanatory, but I can't find any examples of what exactly the "description" should be.



Should it be the address of the property? A literal description of the property (for example, "3 unit apartment building")? Something else?



Thanks.


There is no guidance on this. So... as the safe harbor can be used building by building, it is important to identify the specific building. This can be done by stating the type of property located at street, city, state, zipcode. E.g., Residential rental property located at 123A Boot Hill, Two Guns, AZ 86046

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