I recently heard from a reader of the Tax Reduction Letter asking for advice.
It seems that an IRS auditor had examined the couple’s three rental properties, disallowed their losses, and told them to expect a tax bill for $55,000!
My reader asked if there was anything he and his wife could do to successfully challenge the IRS ruling and avoid paying the $55,000.
It turned out there was something they could do and they prevailed. (That’s one win for the good guys!)
If you want to learn how to deduct losses on a rental house, rental condo, and vacation home, even when the IRS says that the losses are not deductible, don’t miss my new article titled Tax Tips: How the IRS Lost $55,000 in This IRS Rental Properties Audit.
Three ways our fact-filled article can help you:
- You’ll learn why being considered a “real estate professional” is so helpful. When you’re a real estate professional, as defined by the IRS, you can deduct your rental losses against all of your other income for each of the properties in which you “materially participate.” You’ll get the details when you read the full article.
- We’ll explain the important concept of “material participation.” Uncle Sam says that you materially participate in your business if you participate on a “regular, continuous and substantial basis.” What’s more, if you want to deduct losses from your rental property, you need to pass one of seven tests. We’ll explain all this fully when you read the full article.
- We’ll list five facts you need to know now. If you ever have to go up against the IRS, you’ll be glad you got this vitally important information. Don’t miss it. Now is the time to read the full article.