You'll need to sign in or create an account to connect with an expert.
Did you indicate you are a real estate professional?
Active participation is not the same as material participation which is also not the same as materially participating as a real estate professional.
Did you indicate you are a real estate professional?
Active participation is not the same as material participation which is also not the same as materially participating as a real estate professional.
Being an active participant in a rental you own and being a real estate professional are totally separate things and you may have indicated the wrong thing. If you are a RE prof then the limits on the rental loss is not limited ... look at your Sch E ... did you have a loss in excess of $25K?
what is recommended. The taxpayer must maintain contemporaneous records, including time reports, logs, or similar documents, regarding the following: (i) hours of all services performed; (ii) description of all services performed; (iii) dates on which such services were performed; and (iv) who performed the services. Such records must be made available for inspection at the request of the IRS.
here from info published in Real Estate Law
keeping detailed time records to demonstrate the time spent on real estate and other activities – the Tax Court will likely reject what it considers a “ballpark guestimate.” In Merino v. Commissioner, for instance, the Court rejected the taxpayer’s summary which he acknowledged was prepared “using his estimates and his memory as to how much time he spent on certain tasks with respect to the real estate rental activity.”
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Cat_Sushi
Level 3
Retiredgranddad
Returning Member
dave-k-alaska
New Member
user17579569856
New Member
brianjbeck
Level 1