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Investors & landlords
More than likely, you mis-read one of the questions concerning active participation and therefore answered it wrong. Also, you may be fine because of specific wording, and actually answered everything right.
Now, because you have already e-filed and it has been accepted by the IRS, then under no circumstances and with no exceptions, should you change anything "at this point" on your already e-filed and accepted return. If you do, you'll find yourself in a never-ending nightmare with the IRS next year, from which you will never awaken. We're just going to "look" at stuff so I can help you understand and confirm a few things to put your mind at ease.
On the fist screen when you start working through the rental section, but before you actually get to the specific rental property screen, on the screen titled "So far you're not a real estate professional". There are two selections on that screen.
The first selection is checked by you only if you spend more than 750 hours a year directly involved in real estate. Now if you were a licensed Real Estate Agent, that would be an easy "yes" if that was your primary job. But if not, and lets say you only own a single rental property.
750 hours - that's 94 eight hour days - So with 24 mon-fri working days in a month, that's almost 4 months, 5 days a week, 8 hours a day being "directly involved" in the property. I seriously doubt you'd be anywhere even close to that if you only own a single rental.
The 2nd selection checkbox is selected by you only if you spend more than 50% of your working time earning money "directly involved" in real estate activity. Again, if you only have one rental, then that's just flat out not possible unless you spend less than 50% of your time stealing money (literally!) from elsewhere to put food on your table. 🙂
Now, if you made wrong selections and were incorrectly classified as a real estate professional, then do not under any circumstances attempt to change anything at this time. Just let me know and I'll help you fix this the property way so you don't have issues with your 2019 taxes next year.
Now, because you have already e-filed and it has been accepted by the IRS, then under no circumstances and with no exceptions, should you change anything "at this point" on your already e-filed and accepted return. If you do, you'll find yourself in a never-ending nightmare with the IRS next year, from which you will never awaken. We're just going to "look" at stuff so I can help you understand and confirm a few things to put your mind at ease.
On the fist screen when you start working through the rental section, but before you actually get to the specific rental property screen, on the screen titled "So far you're not a real estate professional". There are two selections on that screen.
The first selection is checked by you only if you spend more than 750 hours a year directly involved in real estate. Now if you were a licensed Real Estate Agent, that would be an easy "yes" if that was your primary job. But if not, and lets say you only own a single rental property.
750 hours - that's 94 eight hour days - So with 24 mon-fri working days in a month, that's almost 4 months, 5 days a week, 8 hours a day being "directly involved" in the property. I seriously doubt you'd be anywhere even close to that if you only own a single rental.
The 2nd selection checkbox is selected by you only if you spend more than 50% of your working time earning money "directly involved" in real estate activity. Again, if you only have one rental, then that's just flat out not possible unless you spend less than 50% of your time stealing money (literally!) from elsewhere to put food on your table. 🙂
Now, if you made wrong selections and were incorrectly classified as a real estate professional, then do not under any circumstances attempt to change anything at this time. Just let me know and I'll help you fix this the property way so you don't have issues with your 2019 taxes next year.
‎June 3, 2019
5:30 PM