If you own rental properties, gaining “real estate professional” status can save you a ton of money.
Why? Because if you can legitimately claim that you’re a real estate professional you can deduct rental property losses against your other income!
Does this mean you have to give up your current career and tend to your rentals 100% of the time? Absolutely not… but there are some things you have to know and I’ll spell them out for you in my new, free article titled Tax Tips: Sale of Three Rental Properties Releases Passive-Loss Deductions on Six Rental Properties.
Three ways our fact-filled article can help you:
- We’ll explain why it’s so important to create “proof of time spent” on your rentals. It’s really pretty simple. If you can’t provide proof of how much time you spend managing your rentals, you can’t take advantage of valuable passive-loss deductions. We’ll give you the details when you read the full article.
- We’ll tell you whether to “group” your properties or treat them as individual rentals. This is an important decision that should not be left to the IRS or the courts. We’ll explain this concept and give you some valuable guidance when you read the full article.
- We’ll tell you what you can learn from the Vandergrift case. The IRS audited Raymond Vandegrift’s tax return and disallowed his rental property passive losses, and required him to pay $53,568 in taxes and $10,714 in penalties. Vandergrift said “no way” and took the IRS to court. The outcome can be extremely instructive for you. You’ll get the whole story when you read the full article.