Safe Harbor for Small Taxpayer Reg 1.263(a)-3(h)

[ALIMT]

Can the "Safe Harbor" above be applicable for the Real Estate Rental expenses below to be repair expenses?
Rental Real Estate cost $$317500 + improvements before rented out $19032
Expenses 2013 replaced Pipes in Bathroom (leaking) $4192
Other repair expenses 336 New Garage Door 725
Gardener, pest control, tree removal Expenses 2135

The Garage door will be depreciated at 27.5. What would be the best to handle these expenses? If the above qualifies, and if my software
(Ultra Tax) does not have the election form, how do I create one? Total 2013 Expenses above is $6663.00. Thanks for your help.

[Gretel]

IMO, total expenses are above the 2%. You cannot pick and choose, all expenses need to be under 2%.

[Kram BergGold]

Also

Also the unadjusted basis does not include land.

[TXEA]

The expenses included (in the 2% or $10,000) for this election include: all expenses paid for repairs, maintenance, improvements, and similar activities performed on the eligible building property and does not exceed the lesser of:

2% of the unadjusted basis of the eligible building property (exclude land)

$10,000


I do not think pest control is included in the above. Gardener (depending on what is done) and tree removal might be. Some might argue that tree removal be capitalized to land cost. Repairs to the pipes, other repairs, and the garage door would be included. So, if cost are greater than 2% - election not available or if greater than 10,000 election not available.

In Ultra Tax, use the general footnote on the main client information screen - bottom right corner and type the election.