Comments on: Real Estate Professional Loophole https://evergreensmallbusiness.com/real-estate-professional-loophole/ Actionable Insights from Small Business CPAs Sun, 24 Sep 2017 19:13:44 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Cliff https://evergreensmallbusiness.com/real-estate-professional-loophole/#comment-4469 Sun, 24 Sep 2017 19:13:44 +0000 http://evergreensmallbusiness.com/?p=4951#comment-4469 In reply to Real Property Management Citywide.

I would agree, glad I found this and now this has me researching some other areas I need to get into about some of my personal investments. Thanks

]]> By: Real Property Management Citywide https://evergreensmallbusiness.com/real-estate-professional-loophole/#comment-4106 Sat, 24 Jun 2017 15:40:10 +0000 http://evergreensmallbusiness.com/?p=4951#comment-4106 This is the best article I’ve read on real estate loophole. Clear, concise, relevant, and conclusive.

]]> By: Michael https://evergreensmallbusiness.com/real-estate-professional-loophole/#comment-4105 Sat, 24 Jun 2017 09:10:27 +0000 http://evergreensmallbusiness.com/?p=4951#comment-4105 A very valuable post! This is a great loophole and an important point for those wanting to stay out of trouble with the IRS. A lot of people think that just by owning real estate you are entitled to take the losses, but that’s not true in all cases. My wife is a hard-nosed CPA and we have debated this a lot, but the truth is it’s a pretty straightforward. In her words,

“Real estate is passive by nature. Passive losses are only deductible against passive income (not wages, interest, capital gains, etc.). If there is no passive income, then it is suspended and carried over indefinitely until you sell the activity that is generating the losses. There is an exception for taxpayers with AGI below $150K that are allowed to deduct up to $25K in rental real estate losses against other income. That’s it in a nutshell.”
Unfortunately, CPAs often give bad advice and take deductions they should not. But few real estate investors will be able to prove that they’re a real estate professional if it is something they only do on the side.

]]> By: Rachel @ BuiltforTeams.com https://evergreensmallbusiness.com/real-estate-professional-loophole/#comment-4092 Mon, 19 Jun 2017 19:20:39 +0000 http://evergreensmallbusiness.com/?p=4951#comment-4092 Although I don’t fall into the category that this applies too (what’s the loophole for those making less than $100,000?) I thought this was very interesting. On the one hand, it makes me want to be meticulous with my records, but also I think it’s a great example of fighting your case. The IRS isn’t always right. Thanks for sharing.

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