Diane Kennedy
Bronze Contributor
User Power
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- Aug 31, 2007
- 780
- 193
If you are currently claiming the real estate professional status on your tax return to take full advantage of your tax losses, you could be in trouble from an IRS audit.
Some of the highlights of the new audit guidelines that we got our hands on late last night:
- If your property is inside an LP and you're an LP in it (not GP), you won't get the real estate loss deduction.
- Your hours spent in "investment" activities will not count toward your hourly requirement. You must be "active" in real estate, which means actually at the property and not just in meetings.
Some of the highlights of the new audit guidelines that we got our hands on late last night:
- If your property is inside an LP and you're an LP in it (not GP), you won't get the real estate loss deduction.
- Your hours spent in "investment" activities will not count toward your hourly requirement. You must be "active" in real estate, which means actually at the property and not just in meetings.
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