If you claim status as a tax-law-defined real-estate professional, you’ll be able to deduct your rental-property losses.
But “claiming” that you’re a tax-law-defined real-estate professional is very different from proving that you are. And the IRS wants proof that you…
- Spend more than one-half of your personal service time in real-property trades or businesses in which you materially participate.
- Spend more than 750 hours of your personal and investor services time in real-property trades or businesses in which you materially participate.
What’s the best way to prove that you’re in compliance with these requirements? You’ll find out when you read my new article titled Tax Tips: Audit-Proof Your Time Spent on Rental Properties!
Three ways our fact-filled article can help you:
- You’ll learn the most important way to stay out of trouble. Let me sum it up in three words: Keep a log. Both the IRS and courts will come down hard on you if you can’t adequately document how much time you spent materially participating in each property (or, if grouped, in the rental group.) You’ll get the whole story when you read the full article.
- We’ll explain an extremely useful strategy. Consider establishing an office in your home for your rentals so your trips from your principal office to the rental, produce deductible mileage. This, in turn, produces countable work time (travel time from one work location to another). And, of course, be sure to keep track of your trips in your log! All will be explained when you read the full article.
- We’ll show you what an audit-proof log looks like. You’ll learn exactly what information you need to keep and how to create a trail to your corroborative evidence. Don’t miss the information we’ve got waiting for you. Read the full article.