All Forum Posts by: Brigitte Garrett

Has anyone had any luck supporting PPP forgivable fund applications for their 4unit and under Rental Properties reported on their Schedule E? If yes, what information did you use to support getting this loan?  As far as I am concerned, I am self employed and the net is my earnings.  My lender is saying that Real Estate Holding Companies are not eligible.  I own the property in my name (that is a topic of another discussion) and have the loan in my name.  Any ideas ?  

Thanks for your reply!

I am reviewing our rental building insurance renewal and found an endorsement called Ordinance or Law Coverage.

Do any of you know how to find out the ordinances or laws applicable in a particular locale in relation to what is considered “Major damage”?  I've asked our insurance agent for some guidance and am awaiting a reply.

Basically this endorsement will pay for some portion of the cost for rebuilding your “undamaged” portion of property if the loss is over the municipalities threshold requiring full demolish/rebuild. It looks like the basic insurance policy will not cover for the rebuild of the undamaged portion of the building, which is only being rebuilt due to municipality code, without this endorsement. In addition, there are limits that you can select for this endorsement.

Would you mind sharing what levels of coverage (percentage of current building value) you are carrying on this endorsement?

Thanks in Advance!!

ignoring the  safe harbor $2,500 rules:

Are replacement Kitchen cabinets in 1 unit of a 4-plex considered repairs vs improvement?

Are vinyl and or laminate floors installed as a carpet replacement in 1 unit of a 4-plex considered repairs vs improvement?

Do the cabinets and flooring count because they are an immaterial part of the "building Unit"?

Looking for guidance on the following expenditures made and the application of the $2500 De Minimis Safe Harbor rules.

• Do either replacement of kitchen cabinets or replacement of flooring with laminate and vinyl fall under this rule?  If not why?  We cannot use the SHST rule because we have greater than 2% spending on just repair and maintenance.
• Is there a list of common spending activities on rental properties and the various current tax rules they fall under available anywhere?

Thanks so much!

Thank-you.  Where I am getting confused is regarding the Safe Harbor Election by Small Taxpayers 2% of asset rule.  For example all my improvements, repairs and maintenance is greater than 2% of my buildings value.  We installed a water meter that I would like to currently deduct but because of work on the building being more than 2% of the building value, even though the meter cost is under $2500 I'm not sure that I can expense it.  Guidance please?

Hi All,

Under the current tax laws is interior painting considered maintenance vs repairs?

What about roof maintenance (replacing a few shingles)?

I would like to have document references to support classifying these two expenses as Maintenance (not repairs) so that I am safely classifying these costs under the Safe Harbor for Routine Maintenance.

Also, it is my understanding that the Safe Harbor rule for Routine Maintenance stands apart form the Safe Harbor Election for Small Taxpayers which is an issue due to the 2% rule.

Safe Harbor Election for Small Taxpayers

The total amount paid during the taxable year for repairs, maintenance, improvements, or similar activities performed on such building property doesn't exceed the lesser of-

• Two percent of the unadjusted basis of the eligible building property; or
• $10,000 (for questions about how to calculate the unadjusted basis, refer to "Figuring the Unadjusted Basis of Your Property" in Publication 946

Safe Harbor for Routine Maintenance

You are not required to capitalize as an improvement, and therefore may deduct, amounts that meet all of the following criteria:

• Amounts paid for recurring activities that you expect to perform;
• As a result of your use of the property in your trade or business;
• To keep the property in its ordinarily efficient operating condition; and
• You reasonably expect, at the time the property is placed in service, to perform the activities:
  • For building structures and building systems, more than once during the 10-year period beginning when placed in service, or
  • For property other than buildings, more than once during the class life of the unit of property.

Thanks in advance for any guidance you can provide.

Thanks for your information!

BTW, I ended up with a quote for just under $1700 a building with Countrywide Financial.

Great savings.  I appreciate your input!

Thanks to both of you!  Shopping tomorrow!