Real Estate Investment News & Blog

3 Tricks to Winning the Material Participation Test

According to the material participation rules, you must spend 500 hours or more in activity with your property. You and your spouse can combine your hours.

The IRS is going to challenge what they consider “investor” activities with the property. Specifically, if all you do is read financial statements and look things up on the Internet, they will disallow those hours. They want to see you active.

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How to Safely Take the Real Estate Professional Tax Deduction

One of the hottest real estate tax strategies is the Real Estate Professional. The IRS is on to this one, though, so make sure you follow the rules.

If your income is over $150,000, you can not take advantage of your real estate passive losses unless you are a “Real Estate Professional.” If you want to get the tax advantage, though, you’re going to want to be a Real Estate Professional….

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