[Chay]

I'm aware of the cadre of practitioners who take the position that section 195 applies to section 212 activities even though this is not provided for in the statute or any regulations.

So, what about Treas. Reg. § 1.263(a)-1(f), the de minimis safe harbor? This regulation provides that a non-capitalized amount may be deducted provided that "the amount otherwise constitutes an ordinary and necessary expense incurred in carrying on a trade or business". Pub. 535 states that you must have "a trade or business, partnership, or S corporation" in order to make the election.

Is this another case where practitioners are applying the rule to non-trade or business rentals without regard to what the regulations and literature say? Is there any support for such a position?