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How do I prove that I actively participated in my property management? I was given a taxpayer inquiry for my past 2019 tax return. But I did file stating that

 was given a taxpayer inquiry for my past 2019 tax return. But I did file stating that that I actively participated, but they are asking for information that I am a tax professional.
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How do I prove that I actively participated in my property management? I was given a taxpayer inquiry for my past 2019 tax return. But I did file stating that

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.

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3 Replies

How do I prove that I actively participated in my property management? I was given a taxpayer inquiry for my past 2019 tax return. But I did file stating that

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.

How do I prove that I actively participated in my property management? I was given a taxpayer inquiry for my past 2019 tax return. But I did file stating that

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? 

How do I prove that I actively participated in my property management? I was given a taxpayer inquiry for my past 2019 tax return. But I did file stating that

 

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.”

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