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What is a Real Estate Professional For US Federal Income Tax Purposes

Everyday people misinterpret the tax code.  It does not matter if you are a bookkeeper, accountant, unlicensed tax practitioner, Enrolled Agent, CPA, tax attorney, or even a Tax Court Judge, the tax code is complicated and confusing and many of

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Posted in Material Participation, Passive Activity, Real Estate Professional

Richard S. Leyh et ux. v. Commissioner – Contemporaneous Log Detailing Rental Property Activity Permissible in Defining Real Estate Professional for Income Tax Purposes

Richard S. Leyh et ux. v. Commissioner (T.C. Summ. Op. 2015-27) details a case in which a taxpayer could revise her contemporaneous log of daily rental property activity and qualify as a real estate professional for income tax reporting purposes.

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Posted in Rental Real Estate, Tax Court, Tax Deductible Expenses, Tax Guidance & Preparation

What is a Real Estate Professional?

The Perturbing New Treatment of Patents Under the Tax Cut & Jobs Act (TCJA)

In reviewing James F. Moss, et ux. v. Commissioner 135 TC No. 18 to be a real estate professional, a taxpayer must meet two requirements: (1) More than one-half of the taxpayer’s personal services must be performed in real property trades or businesses in which

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Posted in Rental Real Estate

Who is not considered a ‘real estate professional’ for tax purposes?

Attorney specializing in real estate CPA’s specializing in real estate Banker or mortgagor Investment advisor Financial planner or consultant Interior decorator Taxpayer who works on a building but is not in the real property business Taxpayer who is less than

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Posted in Rental Real Estate

Passive Activities and the Real Estate Professional – IRC 469(c)(7) and Reg. 1.469-9

A qualifying real estate professional may deduct rental real estate losses for each rental in which he/she materially participates provided 3 tests are passed: More than one half of the taxpayer’s personal services must be in real property business.  ‘Real

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Posted in Passive Activity, Rental Real Estate
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