Small Taxpayer Safe Harbor
The Tangible Property Regulations include a Safe Harbor for small taxpayers. This safe harbor is an excellent opportunity for (among others) single-family residential rentals, apartment complexes, and student housing. This Safe Harbor, within the Tangible Property Regulations (under ยง263a), allows all expenditures under the lesser of $10,000 or two percent (2%) of the unadjusted basis …